Here’s Which Hybrids Qualify for Federal Tax Rebates

Looking to snap up a new hybrid vehicle in the new year and have tax credits on your mind? Oh dear — you’ve got some homework to do. Despite its popularity, understanding both what and which qualifies for the $7,500 federal tax credit for electric vehicles might be the most confusing and overly complicated aspect of EV ownership.

Related: ​​So You Want to Buy a Hybrid Car: 6 Things to Know

Thankfully, the line between what hybrids do and do not fall under the EPA’s federal tax incentive program is cut and dry. Let’s break it down and see if you have some of that sweet, sweet incentive cash coming your way.

PHEVs Only

For 2024, the list of qualified vehicles only includes fully electric vehicles and a small selection of plug-in hybrids. That means if your budget or interest extends only to traditional “parallel” hybrids like the standard Toyota Prius or Honda CR-V Hybrid, you won’t qualify for the rebate.

The list narrows further when you factor in the EPA’s two-pronged requirement that both the vehicle and battery pack of qualified EVs and PHEVs are assembled in North America. Additionally, a percentage of the battery’s key materials must be sourced from the U.S. or countries that hold free-trade agreements with the U.S. There’s slight leniency with these production requirements, as vehicles that fulfill only one of the conditions could qualify for a $3,750 rebate.

If your car is still in the running, make sure the battery meets the EPA’s 7-kilowatt-hour minimum power rating and falls within set pricing limits. That’s $55,000 for cars, wagons and hatchbacks, and $80,000 for SUVs, light trucks and vans that don’t spin the scale past 14,000 pounds.

Not sure if your vehicle has made the cut? View the list here of all PHEVs that qualify for partial and full federal tax rebates.

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• Shop for a Hybrid

Used You Can Choose

If your first PHEV pick isn’t on that list of new cars, you might want to consider the used market. A new law now offers a tax rebate on some used EVs and PHEVs purchased from dealers. The final sale price must be $25,000 or less for vehicles at least 2 model years old, and the buyer’s household income is capped at $75,000 for individuals, $150,000 for joint filings and $112,000 for heads of households. If you hop through these hoops, your rebate tops out at $4,000 or 30% of the purchase price, whichever is lower.

In contrast to the truncated list of new PHEVs, the list of qualified used plug-ins is lengthy and not limited by regional production requirements. Check out the EPA’s list of approved used EVs and PHEVs here.

Check State Regulations

Of course, even if your PHEV claims the full-fat $7,500 credit, make sure you check your state legislation, as most states offer additional rebates that include both cars and charging equipment. For more information, see the Department of Energy’s list of available benefits by individual states.

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