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2024 Plug-In Hybrid: Eligible Models for Federal Tax Credits
Published: October 3rd, 2024.
As electric vehicle (EV) technology gains traction, many drivers explore plug-in hybrid electric vehicles (PHEVs) as a bridge between traditional gasoline engines and full electrification. PHEVs offer the convenience of a gasoline engine with the added benefit of an electric motor, allowing short drives on electric power alone. To incentivize consumers to adopt cleaner vehicles, the federal government offers tax credits of up to $7,500 for qualifying PHEVs.
Since the program was enacted, Americans have saved more than $2 billion in upfront vehicle costs, making cleaner transportation more accessible.
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2024 Plug-In Hybrid Models Eligible
Audi Q5 plug-in hybrid: $3,750 credit
- The 2024 Audi Q5 plug-in hybrid offers a blend of luxury and performance. Its starting price is $59,795. It features a 362-horsepower powertrain and an electric-only range of 17 miles. Though the new model is already out, the 2024 version still qualifies for a $3,750 tax credit.
Chrysler Pacifica plug-in hybrid: $7,500 credit
- The Chrysler Pacifica is the only minivan eligible for the $7,500 tax credit. Priced at $52,750, it offers a 33-mile electric range, seven seats, and practical features ideal for families looking to save on fuel while maintaining versatility.
Ford Escape plug-in hybrid: $3,750 credit
- The 2024 Ford Escape plug-in hybrid starts at $41,995 and qualifies for the $3,750 tax credit. It has a 30-mile electric-only range and pairs a 2.5-liter engine with an electric motor, making it an eco-friendly compact SUV option.
Jeep Grand Cherokee 4xe: $3,750 credit
- Jeep’s 2024 Grand Cherokee 4xe offers rugged capability combined with hybrid technology. Starting at $62,285, it provides an electric-only range of 23 miles and qualifies for a $3,750 credit, making it a great option for off-road enthusiasts who want to reduce their emissions.
Jeep Wrangler 4xe: $3,750 credit
- The 2024 Jeep Wrangler 4xe features a 14.0-kWh battery and an electric-only range of 21 miles. Starting at $52,590, the PHEV Wrangler maintains the Jeep’s legendary off-road capabilities while qualifying for the $3,750 tax credit.
Lincoln Corsair Grand Touring: $3,750 credit
- The 2024 Lincoln Corsair Grand Touring is a premium compact SUV with a starting price of $55,760. This plug-in hybrid offers a 28-mile electric range and qualifies for a $3,750 credit, combining style, luxury, and eco-friendliness.
What Makes a Vehicle Eligible?
To qualify for the federal tax credit, plug-in hybrids must meet several key criteria. First, the vehicle must have a battery capacity of at least 7 kilowatt hours and weigh less than 14,000 pounds. Additionally, it must be made by a qualified manufacturer and undergo final assembly in North America.
Finally, the price of the vehicle plays a role. The manufacturer’s suggested retail price (MSRP) for vans, SUVs, and trucks cannot exceed $80,000 or $55,000 for other types of vehicles. The credit amount can vary based on these factors, with some vehicles qualifying for the full $7,500 and others for a partial $3,750.
To check which vehicles are eligible and details about the federal tax credit, visit the EPA’s website or consult your local dealership to determine your vehicle’s eligibility.
These tax credits are part of the government’s effort to make clean energy vehicles more affordable. Since the point-of-sale mechanism was enacted on January 1, 2024, Americans have saved over $2 billion in upfront costs on more than 300,000 clean vehicle purchases.
This mechanism allows consumers to apply for the tax credit directly at the dealership rather than waiting to claim it when filing taxes. In addition to upfront savings, owners of plug-in hybrids and EVs can expect long-term fuel and maintenance savings, estimated between $18,000 and $24,000 over the vehicle’s lifetime.