Here’s Every EV that Gets A $7,500 Lease Credit (Updated February 2023)

The Inflation Reduction Act of 2022 made electric vehicles assembled outside of North America ineligible for the $7,500 consumer federal tax credit. Additionally, the legislation set income caps for consumers: individuals with incomes over $150,000, or households with incomes over $300,000, are no longer eligible for the EV tax credit.

However, as we covered last month, there is a loophole for getting around these eligibility restrictions: lease the EV instead of purchasing it.

Under Section 45W of the legislation, commercial buyers of a qualifying clean vehicle are eligible for the federal tax credit — but without the same vehicle assembly, income, and other restrictions of the consumer EV tax credit.

The commercial vehicle tax credit is available to businesses that lease out vehicles to consumers. As a result, many manufacturer-affiliated lenders are now passing on the $7,500 commercial vehicle tax credit as a $7,500 lease incentive to support sales.

Eligible Leased Vehicles (Updated February 18, 2023)

Below is a list of every 2023 car, truck, and SUV that offers a $7,500 lease incentive from the manufacturer’s affiliated lender:

Audi Financial Services

• Audi Q4 e-tron

• Audi Q5 55 e

• Audi e-tron

• Audi e-tron GT

BMW Financial Services

• BMW i4 eDrive35

• BMW iX xDrive50

Chrysler Capital

• Chrysler Pacifica Hybrid

• Jeep Grand Cherokee 4xe

• Jeep Wrangler 4xe

Hyundai Motor Finance

• Hyundai IONIQ 5

• Hyundai Kona Electric

Jaguar Financial Group

• Jaguar I-PACE

Lucid Financial Services

• Lucid Air

Mercedes-Benz Financial Services

• Mercedes-Benz EQB

• Mercedes-Benz EQE

• Mercedes-Benz EQS Sedan

• Mercedes-Benz EQS SUV

Polestar Financial Services

• Polestar 2

Porsche Financial Services

• Porsche Cayenne E-Hybrid

• Porsche Taycan

Volkswagen Credit

• Volkswagen ID.4

Volvo Car Financial Services

• Volvo C40 Recharge

• Volvo XC40 Recharge

• Volvo XC60 Recharge

• Volvo XC90 Recharge

EVs Without a $7,500 Lease Incentive

Not every car company passes on the $7,500 commercial clean vehicle tax credit to lessees. Notably, Ford, GM, and Tesla do not currently offer a $7,500 lease incentive for EVs.

One possible explanation is that the electric vehicles sold by Ford, GM, and Tesla in the U.S. are assembled in North America and already are eligible for the full $7,500 consumer EV tax credit — at least for now, until a time in March 2023 when the Treasury Department releases updated EV guidance. As a result, those companies may have less of a need to incentivize leases this moment.

Below is a list of every 2023 BEV car, truck, and SUV that does not get a $7,500 lease incentive from the manufacturer’s affiliated lender:

• BMW i4 eDrive40, i4 M50, iX M60, and i7

• Cadillac LYRIQ

• Chevrolet Bolt EV and Bolt EUV

• Ford F-150 Lightning and Mustang Mach-E

• Genesis GV60 and Electrified G80

• GMC HUMMER EV

• Kia EV6 and Niro EV

• Mazda MX-30

• MINI Cooper SE

• Nissan ARIYA and LEAF

• Rivian R1S and R1T

• Subaru Solterra

• Tesla Model 3, Model Y, Model S, and Model X

• Toyota bZ4X

How does the lease incentive work?

If offered by the manufacturer’s affiliated lender, the $7,500 incentive is applied as a capitalized cost reduction, similar to a down payment, towards the lease of a vehicle.

Note that the lease incentive does not guarantee a good deal. Some lenders, such as Hyundai Motor Finance, lowered the lease residual value and increased the money factor (the interest rate for a lease) upon offering the $7,500 lease incentive, resulting in minimal changes to the monthly payment.

If you were planning on purchasing the vehicle to begin with, we suggest first leasing the car to take advantage of the newly available $7,500 lease incentive, and then buying out the vehicle immediately to avoid paying the high interest charges. (Tip: First Republic offers a low APR Personal Line of Credit that may be ideal for lease buyouts.)

For incentive data on all cars, be sure to check out Rate Findr — the only place where consumers can look up both lease and finance rates and rebates on demand.