There’s good news and bad news when it comes to tax credits for electric vehicles purchased in 2024.

The good news is instead of having to wait for tax time to take the credit, buyers will get the reduction immediately at the time of purchase of the electric or plug-in hybrid vehicle. The bad news is the number of vehicles that qualify has dropped to 13 due to manufacturing requirements.

Immediate credit

Starting Jan. 1, eligible consumers can transfer the value of the EV tax credit immediately to the dealer, providing a reduction of the price or a down payment at the time of sale. Registered dealers then submit the tax credit information to the Internal Revenue Service. The credit is worth up to $7,500 or $4,000, depending on if the vehicle is new or used.

Eligible cars must have an MSRP below $80,000 for an SUV or $55,000 for a sedan, wagon or hatchback.

According to Consumer Reports, to qualify for the first $3,750 of the credit, a portion of the vehicle’s battery components must be produced or assembled in North America. To get the second half, a portion of the critical minerals used in the battery must have been extracted or processed in the U.S. or a country that is a free-trade agreement partner or made from materials recycled in North America.

List of eligible vehicles

Fewer vehicles will qualify for the credits, however. Starting in 2024, EV with battery components built or assembled by a “foreign entity of concern,” – China, Iran ,North Korea or Russian – do not qualify for the tax credit.

Here are the 13 vehicles that qualify and the eligible amounts of the credit, per Business Insider:

• Chevrolet Bolt EV – $7,500
• Chevrolet Bolt EUV – $7,500
• Tesla Model 3 Performance – $7,500
• Tesla Model Y – $7,500
• Tesla Model X – $7,500
• Rivian R1S – $3,750
• Rivian R1T – $3,750
• Ford F-150 Lightning – $7,500
• Ford Escape plug-in hybrid – $3,750
• Chrysler Pacifica PHEV – $7,500
• Jeep Cherokke PHEV 4xe – $3,750
• Jeep Wrangler PHEV 4xe – $3,750
• Lincoln Corsair Grand Touring – $3,750

You can check what a vehicle qualifies for by entering its VIN at fueleconomy.gov.

Other qualifications

To qualify for the credits, you must be purchasing the vehicle for your own use and not for resale.

There are income requirements, too. To qualify, Adjusted Gross Income must be under $300,000 for married coupled filing jointly; $225,000 for heads of households; or $150,000 for all other filers.

Qualified vehicles must also have a battery capacity of at least 7 kilowatt hours, have a gross vehicle weight rating of less than 14,000 pounds and be made by a qualified manufacturer.

Qualifying vehicles must be made in the U.S. and have a MSRP below $80,000 for an SUV or $55,000 for a sedan, wagon or hatchback.