United States

IRS adds vehicles to section 30D qualified electric vehicle list

TAX ALERT  | 

The IRS added 12 new 2022 model year plug-in electric drive motor vehicles to the list of qualified vehicles eligible for the section 30D tax credit. The new vehicles eligible for the credit include vehicles manufactured by Ford, Hyundai, Kandi, Kia, Mitsubishi and Rivian.

Section 30D allows for a credit for qualified plug-in electric motor vehicles for the taxable year in which it is placed in service. The maximum amount of the credit allowed for a vehicle is $7,500, and the credit amount varies based on the capacity of the battery used to power the vehicle. The section 30D credit starts to phase out beginning the second calendar quarter after the manufacturer has sold for use 200,000 vehicles in the United States.

The table below shows the credit amount for the newly added vehicles.

Manufacturer

New 2022 Qualifying Models

Credit Amount

Ford

Escape Plug-In Hybrid

$6,843

Hyundai

Ioniq Plug-In Hybrid Electric Vehicle

$4,543

Tucson Plug-In Hybrid

$6,587

Santa Fe Plug-In Hybrid

$6,587

Kandi

K23

$7,500

K27

$7,500

Kia

Niro Plug-In Hybrid

$4,543

Niro EV

$7,500

EV 6 (58 khw, 77.4 khw)

$7,500

Sorento Plug-In Hybrid

$6,587

Mitsubishi

Outlander PHEV

$6,587

Rivian

R1T

$7,500

 

For a full list of eligible vehicles, refer to Qualified Plug-In Electric Drive Motor Vehicles (IRC 30D)

Taxpayers who have questions on how these credits apply and other rules for claiming the credit should consult their tax advisers.

RSM CONTRIBUTORS


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