Which Used EVs and PHEVs Qualify for the Used EV Tax Credit?

August 16, 2022

After years of asking for a used electric vehicle tax credit, we finally have it. Unfortunately, it’s not all that we had hoped it would be. Income limits are strict, and vehicle price caps are even tighter. We analyzed price data to find every EV and plug-in hybrid that may qualify for the used EV tax credit. One takeaway: It’s hard to find a sub-$25,000 electric vehicle!

As far as we can tell from the language of the Inflation Reduction Act, the strict Made-in-America and battery sourcing requirements that apply to new EVs and PHEVs do not apply to used EVs. However, the bill allows for the Treasury Secretary to finalize rules by the end of 2022, so it’s not set in stone just yet. 

The Used EV Tax Credit: A New Incentive With Strict Requirements

Beginning on January 1, 2023, car buyers can claim a $4,000 tax credit when purchasing a used electric vehicle for under $25,000. For buyers purchasing an EV under $13,300, this incentive is capped at 30% of the vehicle’s price. The seller must be a qualified dealer, and the buyer must have an adjusted gross income (AGI) of under $75,000 (individual), $112,500 (head of household) or $150,000 (joint filers). 

Just how many used EVs can be easily found for under $25,000? A quick look at used EV prices is a reality check. If you’re open to settling for an electric vehicle model with lower range, slower charging and more miles on the odometer, you might find a deal that qualifies. 

Used EVs Under $25,000

Nissan Leaf (2011-2018)

Nissan Leaf tax credit

Range:

2011-2015 models – 73 to 84 miles

2016-2017 models – 84 to 107 miles

2018-2022 models – 150 to 226 miles

Max charging speed:

50 to 100 kW (charge to 80% in 45 minutes)

See used Nissan Leaf listings. 

Chevrolet Bolt (2017-2019)

chevy bolt tax credit

Range: 238 miles

Max charging speed:

55 kW (charging to 80% in just under an hour)

See used Chevrolet Bolt listings.

Chevrolet Spark

Chevrolet Spark EV

Range: 82 miles

Max charging speed: 

50 kW 

See used Chevrolet Spark EV listings.

BMW i3 (2014-2017)

BMW i3 tax credit

Range: 81 miles to 188 miles, depending on model year and trim

Max charging speed: 40 kW (charge to 80% in 20 minutes)

See used BMW i3 listings.

Hyundai Kona Electric (2019)

Hyundai Kona EV

Range: 258 miles

Max charging speed: 75 kW (charge to 80% in 50 minutes)

See used Hyundai Kona EV listings.

Kia Niro Electric (2019)

Kia Niro EV

Range: 258 miles

Max charging speed: 75 kW (charge to 80% in 50 minutes)

See used Kia Niro EV listings.

Kia Soul Electric (2019)

Kia Soul EV

Range: 111 miles

Max charging speed: 75 kW (charge to 80% in 50 minutes)

See used Kia Soul EV listings.

2015-19 Fiat 500e EV

Fiat 500e tax credit

Range: 84 miles

Max charging speed: 85 kW 

See used Fiat 500e listings.

2016 VW e-Golf EV

VW e-Golf

Range: 83 miles

Max charging speed: 7.2 kW 

See used Volkswagen e-Golf listings.

Used PHEVs Under $25,000

The used (and new) EV tax credit does make plug-in hybrids (PHEVs) eligible, as long as they have a battery capacity of at least 7 kilowatt-hours. CarEdge’s auto expert Mario Rodriguez analyzed used PHEV prices, and these are the PHEV models that have a shot at qualifying under the $25,000 price cap. 

2016 -18 Audi A3 Sportback e-tron PHEV

2014-17 BMW i3 EV

2011-17 Chevrolet Volt

2013-17 Ford C-Max Energi PHEV

2013-20 Ford Fusion Energi PHEV

2018 Honda Clarity PHEV

2019 Hyundai IONIQ PHEV

2016-17 Hyundai Sonata PHEV

2017-18 Kia Optima PHEV

2018 Mitsubishi Outlander PHEV

2017 Toyota Prius Prime

Used Car Prices Are Beginning to Drop, What About EVs?

The latest data shows wholesale used car prices dropping, but that has yet to translate to lower retail prices. Electric vehicles and plug-in hybrids are likely to be the last to see price declines, as they remain in high demand. We’ll keep you updated with the latest info. 

Keep track of EV market share as more Americans go electric.

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