An electric vehicle's battery size determines the amount of credit you may receive. Typically, the larger the battery, the larger the credit. For some models, the credit amount can fall well below $7,500. Below are the equations used to calculate the amount of your credit:
For vehicles placed in service January 1 to April 17, 2023:
(A) $2,500 base amount
(B) plus $417 for a vehicle with at least 7 kilowatt-hours of battery capacity
(C) plus $417 per kWh of a battery pack greater than 5 kilowatt-hours
A + B + C = Your federal tax credit amount
In general, the minimum credit will be $3,751 ($2,500 + 3 x $417), the credit amount for a vehicle with the minimum 7 kilowatt-hours of battery capacity.
The maximum amount you can receive for this specific tax credit is $7,500.
For vehicles placed in service April 18, 2023, and after:
Vehicles will have to meet all the criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to:
A vehicle that doesn't meet either requirement won't be eligible for a credit.