2024 Nissan Leaf Requalifies for $3,750 Federal Tax Credit
Nissan hasn’t made any changes to its Leaf electric vehicle for 2024, but a behind-the-scenes change to the supply chain could have a big impact on buyers. The brand has announced that the 2024 Leaf is once again eligible for a $3,750 federal tax credit. With the Leaf’s base price set at $29,280 for 2024, buyers could get into one for as little as $25,530 (all prices include destination).
Related: Which Electric Cars Are Still Eligible for the $7,500 Federal Tax Credit?
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Only Leafs manufactured in 2024 and sold on or after March 6 qualify for the EV tax credit. The price cap of $55,000 for electric cars (and $80,000 for trucks and SUVs) is of little concern to Leaf shoppers, but the buyers themselves also need to be eligible for the tax credit. A buyer’s household adjusted gross income cannot exceed $300,000, or $225,000 for a head of household, and single tax filers cannot have income above $150,000.
However, another new development for 2024 means that buyers can now claim the credit at the time of purchase rather than waiting until they file their annual taxes. And for those who decide to lease a model-year 2023 or 2024 Leaf, Nissan is offering a $3,750 incentive for customers.
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Moving Target
Part of the Inflation Reduction Act of 2022, the federal EV tax credit is not terribly complicated, but neither is it exactly straightforward. To qualify for any credit at all, the first requirement is that an EV must be manufactured in the U.S. Vehicles in which at least 50% of the battery components are also assembled in North America are eligible for a $3,750 tax credit. To qualify for the second half of the credit, at least 40% of the critical minerals in the battery must be extracted or processed in the U.S. or by a free-trade partner.
The portion of battery components and minerals necessary for a vehicle to qualify for the credits are set to increase 10% every year through 2027, ultimately to 90% of battery components and 80% of the critical minerals. This is why many EVs that were eligible in 2023 no longer are — and why the Leaf’s status was in question. While both the Leaf and its battery are manufactured in the U.S., automakers today draw everything from the smallest parts to major subassemblies from a global network of suppliers. In order to maintain an EV’s eligibility for the tax credit, its manufacturer has to work with that vast web of suppliers to ensure they are drawing parts from — and assembling components in — qualifying locations.
More From Cars.com:
- Federal EV Tax Credits to Be Given at Time of Sale in 2024
- Leased and Used Electric Vehicles Now Qualify for Federal Tax Credits
- What Does the EV Tax Credit Overhaul Mean for Car Shoppers?
- Should I Buy an Electric Car or Plug-In Hybrid?
- What to Know Before Purchasing an Electric Vehicle: A Buying Guide
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