The landscape for electric vehicle (EV) tax credits in North America underwent a significant shift with the Inflation Reduction Act of 2022 (Public Law 117-169). This legislation, effective from August 17, 2022, introduced a crucial “final assembly in North America” requirement for the Clean Vehicle Credit (IRC 30D). For anyone looking to capitalize on EV incentives, understanding this requirement and how to verify it is essential. This is where car decoder tools become invaluable, helping you ensure your potential EV purchase qualifies for the best possible deals and tax credits.
For new electric, fuel cell electric, and plug-in hybrid electric vehicles acquired, delivered, and placed in service after August 16, 2022, this North American final assembly rule is in effect. The Clean Vehicle Credit provisions have been further updated for vehicles placed in service on or after January 1, 2023, with guidance from the Internal Revenue Service (IRS) and the U.S. Department of the Treasury. Navigating these changes can be complex, but utilizing the right tools, like a car decoder, can simplify the process and potentially unlock significant savings.
Understanding the Clean Vehicle Credit for 2023 and Beyond
For the most current details on Clean Vehicle Credit eligibility, it’s best to consult the IRS information page. Resources like Federal Tax Credits on FuelEconomy.gov offer lists of incentives by vehicle, and our own Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit page provides a summary of the credit.
A significant update starting January 1, 2024, based on proposed IRS regulations, allows buyers to directly reduce the purchase price by transferring their Clean Vehicle Credit to the dealer at the point of sale. Previously, the credit could only be claimed after filing taxes. Dealers now need to use IRS Energy Credits Online to confirm vehicle eligibility. This real-time verification process underscores the importance of accurate vehicle information, making car decoder tools even more relevant for both dealers and buyers seeking the best Car Decoder Tool Deals to streamline this process. Dealers are required to provide buyers with IRS approval documentation, ensuring transparency and eligibility confirmation. For the latest dealer and consumer information on point-of-sale transfers, refer to the IRS Clean Vehicle Tax Credit page.
Eligibility for Vehicles Purchased in Late 2022
The North American final assembly requirement was specifically applicable to vehicles purchased and delivered between August 17 and December 31, 2022. The list below includes Model Year 2022 and 2023 vehicles based on EPA and NHTSA data as of December 31, 2022. However, for vehicles purchased from January 1, 2023 onwards, verifying assembly using a VIN decoder is crucial. Refer to Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit and IRS Qualified Plug-in Electric Drive Motor Vehicle Credit for more details.
It’s important to note that some manufacturers with North American assembly faced a 200,000 EV credit cap for vehicles acquired before January 1, 2023. This cap could affect the full tax credit eligibility. This cap is no longer applicable for vehicles acquired after December 31, 2022.
*Electric Vehicles Assembled in North America
Note: Further eligibility conditions may apply depending on the purchase date.
| Model Year | Vehicle | Manufacturer Sales Cap (applies to vehicles placed in service before January 1, 2023) |
|---|---|---|
| 2022 | Audi Q5 | |
| 2022 | BMW 330e | |
| 2022 | BMW X5 xDrive45e (PHEV) | |
| 2022 | Chevrolet Bolt EUV | Manufacturer sales cap met |
| 2022 | Chevrolet Bolt EV | Manufacturer sales cap met |
| 2022 | Chrysler Pacifica PHEV | |
| 2022 | Ford E-Transit | |
| 2022 | Ford Escape PHEV | |
| 2022 | Ford F-150 Lightning | |
| 2022 | Ford Mustang MACH E | |
| 2022 | GMC Hummer EV Pickup | Manufacturer sales cap met |
| 2022 | GMC Hummer EV SUV | Manufacturer sales cap met |
| 2022 | Jeep Grand Cherokee 4xe | |
| 2022 | Jeep Wrangler 4xe | |
| 2022 | Lincoln Aviator PHEV | |
| 2022 | Lincoln Corsair PHEV | |
| 2022 | Lucid Air | |
| 2022 | Nissan Leaf | |
| 2022 | Rivian EDV | |
| 2022 | Rivian R1S | |
| 2022 | Rivian R1T | |
| 2022 | Tesla Model 3 | Manufacturer sales cap met |
| 2022 | Tesla Model S | Manufacturer sales cap met |
| 2022 | Tesla Model X | Manufacturer sales cap met |
| 2022 | Tesla Model Y | Manufacturer sales cap met |
| 2022 | Volvo S60 Recharge | |
| 2023 | BMW 330e | |
| 2023 | BMW X5 xDrive45e (PHEV) | |
| 2023 | Cadillac Lyriq | Manufacturer sales cap met |
| 2023 | Chevrolet Bolt EV | Manufacturer sales cap met |
| 2023 | Ford E-Transit | |
| 2023 | Jeep Grand Cherokee 4xe | |
| 2023 | Jeep Wrangler 4xe | |
| 2023 | Lincoln Aviator PHEV | |
| 2023 | Lucid Air | |
| 2023 | Mercedes EQS SUV | |
| 2023 | Nissan Leaf | |
| 2023 | Rivian R1S | |
| 2023 | Rivian R1T | |
| 2023 | Tesla Model 3 | Manufacturer sales cap met |
| 2023 | Tesla Model S | Manufacturer sales cap met |
| 2023 | Tesla Model X | Manufacturer sales cap met |
| 2023 | Tesla Model Y | Manufacturer sales cap met |
| 2023 | Volkswagen ID.4 |
This list is subject to updates as manufacturers provide new vehicle information. Manufacturers can use the website contact form to request list updates. See details for manufacturers for more information.
Vehicles Purchased Before August 17, 2022
Vehicles purchased before August 17, 2022, are exempt from the North American final assembly requirement for tax credit eligibility. Refer to Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit and IRS Qualified Plug-in Electric Drive Motor Vehicle Credit for further details.
Utilizing a VIN Decoder to Pinpoint Assembly Location
To definitively determine the assembly location of a specific vehicle, the Vehicle Identification Number (VIN) is your key. Both the VIN itself and information labels on the vehicle provide this data. The National Highway Traffic Safety Administration (NHTSA) offers a VIN decoder tool that reveals the build plant, country of manufacture, and other vehicle specifics. By using a car decoder tool, you can quickly verify North American assembly and take a significant step towards confirming Clean Vehicle Credit eligibility and securing the best car decoder tool deals for your needs.
Verifying North American final assembly is a preliminary step for Clean Vehicle Credit eligibility. Additional conditions may apply based on the purchase date. For vehicles placed in service from January 1, 2023, onwards, consult IRS Credits for New Electric Vehicles Purchased in 2023 and After. For eligibility inquiries, contact the vehicle manufacturer or consult IRS information.
Keep in mind that for certain manufacturers, assembly locations can differ based on the specific vehicle, trim level, or production date within a model year. Always use the VIN decoder or vehicle information label to confirm the assembly location for your specific vehicle. For VIN-related or qualifying information questions, reach out to the manufacturer directly.
“Final Assembly in North America” is defined as assembly occurring in the United States and Puerto Rico, Canada, and Mexico for Clean Vehicle Credit purposes.
Disclaimer: This information is for informational purposes only and not legal or official guidance. For complete details and the latest eligibility requirements, always refer to IRS.gov/cleanvehicles.
