CDJR Federal EV Tax Credit Offers Up To $7,500 In Savings

If you've ever thought about driving with the benefits of an all-electric motor or plug-in hybrid engine, you're going to want to act before the EV tax credit expires. For certain CDJR vehicles, you can receive up to $7,500 in a federal tax credit. For electric cars, 2025 is the last year that the current iteration of this rebate will be supported, so act fast!¹

At Jones Chrysler Dodge Jeep Ram Wickenburg, we offer an impressive lineup of plug-in hybrid vehicles – perfect for supporting an eco-friendly future. A common question is, "How to qualify for the full $7500 federal electric vehicle tax credit?" Let our team walk you through what you'll need to know before your purchase.

Federal EV Tax Credit at a Glance

The current EV tax credit is up to $7,500 on eligible new Chrysler, Dodge, Jeep, or Ram EVs and PHEVs.¹
Used EVs may instead earn up to $4,000 in federal tax credits.¹
There are set limitations – the income limit is $150,000, $225,000, or $300,000 for single, head of household, or joint, respectively. The vehicle must cost under $55,000 for a car or $80,000 for an SUV or truck.¹
However, these benefits are set to expire on September 30th, 2025. Interested buyers should act quickly.
You can choose to claim this bonus as a point-of-sale discount or a tax rebate.

EV Tax Credit Changes

Currently, the EV tax credit (2025 and 2024 new models) is $7,500 for qualified EVs or PHEVs.¹ For used purchases, a smaller tax credit of $4,000 is available for models that reach specific fuel-efficiency credentials.¹ For the CDJR brand, this allows specific lineups, like the Pacifica PHEV and 4xe vehicles, to receive large cuts to their upfront or monthly costs.

However, both of these benefits are scheduled to end by September 30th, 2025. As long as you have documented proof of your purchase before that date, you may still file your taxes with that rebate selected.¹ If you do not make your purchase before then, there will be no federal-level tax break for purchasing an EV for the foreseeable future.¹

What's New in the Law?

What is changing in the near future is a brand-new deduction on U.S.-assembled new cars. For tax years 2025 to 2028, you can receive up to $10,000 for your loan on a new vehicle if it was built in the U.S.¹ When you look through new CDJR vehicles, you'll see dozens of models, years, and trim levels that were assembled in the U.S., which means they could qualify for this deduction – provided you meet the income requirements.¹ This applies to EVs made locally, so if you have questions, please feel free to ask us.

However, EVs will still require more cash than they have in recent years. Due to the phasing out of other green energy tax breaks (such as for solar, wind, and EV charging stations), there are fewer and fewer options to take advantage of. While there are still plenty of benefits to owning a partially or fully electric vehicle, the loss of these green incentives (including the EV charger credits being removed by June 2026) will take a toll on new EV owners.

Why This Matters

Unfortunately, the combination of lost EV tax credit opportunities and new incentives for all American-made models will likely reduce sales of electrified vehicles. Customers like you have until the end of September to take advantage of this $7,500 discount (or $4,000 for used vehicles) for your next tax year.

While they receive slightly less from tax breaks, EV and PHEV models provide cost-effective methods of saving you money and fuel. For example, electric car maintenance costs are generally lower, and most electric cars vs. gas cars comparisons reveal that a vehicle's electric or PHEV powertrain tends to be more affordable compared to a gas-only option.

Example EVs To Look For

Before September 30th comes, it's time to take advantage of the extraordinary value that these credits can offer. For instance, the Jeep EV tax credit covers several high-end levels that enhance your day-to-day experience. The Jeep Wrangler EV tax credit applies to the 4xe lineup, our plug-in hybrid SUVs that are just as durable as their gas counterparts. From charging the Wrangler 4xe to benefitting from its 4x4 capability, your ownership experience with one of the safest electric cars for off-roading is straightforward and eco-friendly. The same goes for the Jeep Grand Cherokee 4xe PHEV.

Want even more space? Take advantage of a Chrysler Pacifica EV tax credit might be preferred. In terms of sustainable driving, the Chrysler Pacifica PHEV benefits from a 32-mile all-electric driving range² and utilizes regenerative braking to maximize fuel efficiency.

Our representatives can help you understand the steps you need to take to make electric driving intuitive. We can help you install an EV charging station at your home, show you how to use your mobile app to locate charging stations if your model is fully electric, or take you on a test drive so you can see how electrification enhances your driving experience.

Shop All-Electric Models at Jones Chrysler Dodge Jeep Ram Wickenburg

Our team is ready to make your CDJR ownership experience prestigious, regardless of whether it has an electrified engine or an all-gas powertrain. Explore CDJR vehicles, like the Wrangler 4xe or Pacifica PHEV, and see why so many families rely on their high-quality safety features and durable chassis.

Choosing a model after September 30th? We can guide you through how the all-American rebate works.¹

Frequently Asked Questions

Which CDJR electric or plug-in hybrid vehicles qualify for the federal tax credit?

Three CDJR models qualify for a federal tax credit in 2025.¹ They are the:

Pacifica PHEV
Jeep Wagoneer S
Wrangler 4xe PHEV
Grand Cherokee 4xe

At Jones Chrysler Dodge Jeep Ram Wickenburg, we specialize in the Wrangler 4xe and Grand Cherokee PHEVs. These plug-in hybrid models are the perfect options for those who want to experiment with charging stations while retaining the well-known durability of Jeep SUVs.

Are there price caps on CDJR vehicles to qualify for the tax credit?

Yes, with the current federal tax credit, there are price caps on CDJR vehicles. Below $80,000 for trucks or SUVs and $55,000 for sedans or coupes, you will be able to purchase any trim of the Wrangler 4xe and benefit from the $7,500 federal tax credit.¹ Even for models like the Chrysler Pacifica PHEV or Wagoneer S, it's easy to stay within the range.¹

Does the federal tax credit apply to leasing CDJR electric vehicles?

Yes, in many cases, you will receive a significant discount for leasing select CDJR EVs that qualify for the federal tax credit. However, in this case, be sure to check the overall price of your model. Most dealerships obtain the tax credit and pass it on to the lessee. This also applies to state or local incentives, many of which can significantly lower your overall price of charging and purchasing.

¹At the time of writing. Incentives are subject to change without notice and are intended for informational purposes only. Please note that this is not tax advice. Consult with your tax adviser for further details and to determine eligibility.

²Based on EPA estimates with a fully charged battery. Actual range may vary.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, license, and $499 documentation fee. Additional equipment added by the dealer or the purchaser will increase the overall transaction amount. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.