Is there a tax credit for buying an electric car in 2020?
Andrew Mclaughlin
Published Mar 31, 2026
If your purchased an electric or alternative motor vehicle in 2020, you may be able to claim credit on your 2020 Tax Return. The Qualified Plug-In Electric Drive Motor Vehicle Credit can be worth up to $7,500 in nonrefundable credit.
Qualified Plug-In Electric Drive Motor Vehicle Tax Credit You may be able to claim a tax credit for placing a new, qualified plug-in electric drive motor vehicle into service. The IRS tax credit ranges from $2,500 to $7,500 per new electric vehicle (EV) purchased for use in the U.S. beginning on January 1, 2020.
How many times can I claim EV tax credit?
Yes, if you purchase the eligible electric vehicle during the tax year you can use the credit for that tax year. If the credit reduces your tax liability to zero any further credit is lost. This is not a once in a lifetime credit.
What kind of tax credits do you get for electric cars?
However, a few qualify for the full federal EV tax credit including: 1 2020 and 2021 Toyota Rav4 Prime 2 2020 Chrysler Pacifica Hybrid 3 2020 Honda Clarity PHEV
What’s the difference between electric and hybrid tax credits?
A fully electric vehicle has more battery capacity than a hybrid model, so hybrid vehicles do not receive the full $7,500 incentive. However, plug-in hybrids can receive an incentive starting at $2,500 plus $417 for every 5kWh of battery capacity.
Which is electric cars still eligible for the$ 7, 500?
Electric Cars Eligible For $7,500 Tax Credit 1 Audi eTron, eTron Sportback 2 BMW i3 3 Hyundai Ioniq EV 4 Hyundai Kona EV 5 Jaguar I-nPace 6 Karma Revero 7 Kia Niro EV 8 Mini Cooper SE Hardtop 9 Nissan Leaf 10 Polestar 1 11 Polestar 2 12 Porsche Taycan 13 Volvo XC40 Recharge 14 Volkswagen ID.4 More …
Are there any EVs that are not eligible for tax credit?
Another popular EV, the Chevrolet Bolt EV, also is no longer eligible for any tax credit. The remainder of the list includes practical city cars like the Nissan Leaf, more premium hatches like the BMW i3 and Mini Cooper SE Hardtop, and luxury SUVs like the Jaguar I-Pace and Audi eTron.
