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 previously, there is a way of 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 June 6, 2024)

Below is a list of every electrified 2023 and 2024 car, truck, and SUV that offers a $7,500 or higher lease incentive from the manufacturer’s affiliated lender:

Audi Financial Services

• Audi Q4 e-tron

• Audi Q5 55 e (PHEV)

• Audi Q8 e-tron

• Audi e-tron GT

BMW Financial Services

• BMW i4

• BMW i5

• BMW i7

• BMW iX

Chrysler Capital and/or Stellantis Financial Services

• Alfa Romeo Tonale

• Chrysler Pacifica Hybrid

• Dodge Hornet R/T

• Jeep Grand Cherokee 4xe

• Jeep Wrangler 4xe

Ford Credit

• Ford Mustang Mach-E

• Ford F-150 Lightning (select trims and VINs)

Genesis Finance

• Genesis GV60

• Genesis Electrified GV70

• Genesis Electrified G80

Hyundai Motor Finance

• Hyundai IONIQ 5

• Hyundai IONIQ 6

• Hyundai Kona Electric

Jaguar Financial Group

• Jaguar I-PACE

Kia Finance

• Kia EV6

• Kia EV9

• Kia Niro EV

Lexus Financial Services

• Lexus NX 450h+

• Lexus RX 450h+

• Lexus RZ 450e

Lucid Financial Services

• Lucid Air

Mazda Financial Services

• CX-90 PHEV

Mercedes-Benz Financial Services

• Mercedes-Benz EQB

• Mercedes-Benz EQE Sedan

• Mercedes-Benz EQE SUV

• Mercedes-Benz EQS Sedan

• Mercedes-Benz EQS SUV

MINI Financial Services

• MINI Cooper SE

Nissan Finance (NMAC)

• Nissan ARIYA

Polestar Financial Services

• Polestar 2

Porsche Financial Services

• Porsche Cayenne E-Hybrid

• Porsche Panamera E-Hybrid

• Porsche Taycan

Rivian Financial Services

• Rivian R1T

• Rivian R1S

Subaru Motors Finance

• Subaru Solterra

Toyota Financial Services

• Toyota bZ4x

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 Cash Incentive

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

One possible explanation is that most, but not all, electric vehicles sold by Ford and GM in the U.S. are assembled in North America and already are eligible for the full $7,500 consumer EV tax credit. As a result, those companies may have less of a need to incentivize leases this moment.

Another explanation is that the lender may choose to pass on the commercial vehicle tax credit in other ways, such as by inflating the residual value or subsidizing the money factor (i.e., the interest rate for a lease) to lower lease payments.

Below is a list of every 2024 BEV car, truck, and SUV that does not get a $7,500 lease cash incentive or greater from the manufacturer’s affiliated lender:

• Cadillac LYRIQ (offers residual value support instead)

• Chevrolet Blazer EV (offers residual value support instead)

• Ford F-150 Lightning (incentive amount varies by model and VIN, may exceed $7,500 on some trims)

• GMC HUMMER EV

• Nissan LEAF ($3,750 lease cash)

How does the lease incentive work?

If offered by the manufacturer’s affiliated lender, the $7,500 lease cash 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 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.

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.