The Latest on EV Tax Credits for New Lexus Models at Performance Lexus

August 5th, 2025 by




EV Tax Credits for Lexus Models

Unlocking Your Savings: The Latest on EV Tax Credits for New Lexus Models at Performance Lexus

At Performance Lexus, serving drivers throughout Cincinnati, Cleveland, Columbus, and all of Ohio, we are dedicated to keeping you informed about the latest opportunities to save on your next vehicle. With the automotive landscape continuously evolving, it’s more important than ever to understand the incentives that can make a new or pre-owned electric vehicle an even smarter investment.

The federal tax credits for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) remain a powerful incentive for buyers. While these credits are not tied to any immediate expiration date, the eligibility requirements are continuously changing, making it essential to understand the current rules before you buy.

Federal Tax Credits: What You Need to Know in 2025

The Clean Vehicle Tax Credits, established under the Inflation Reduction Act of 2022, provide a significant financial incentive for qualified buyers. These credits are designed to make clean vehicles more accessible while also promoting domestic manufacturing.

For New Vehicles: Up to a $7,500 Tax Credit

To qualify for the full $7,500 credit on a new vehicle, the vehicle must meet two key requirements:

  • Critical Mineral Sourcing: A percentage of the battery’s critical minerals must be sourced from the U.S. or a country with a U.S. free-trade agreement. The percentage required for 2025 is 60%.
  • Battery Component Manufacturing: A percentage of the battery’s components must be manufactured or assembled in North America. The percentage required for 2025 is also 60%.

In addition to these requirements, the following caps apply:

  • MSRP Cap: The Manufacturer’s Suggested Retail Price (MSRP) cannot exceed $80,000 for SUVs, trucks, and vans, or $55,000 for other vehicles.
  • Buyer Income Limits: Your Modified Adjusted Gross Income (MAGI) must be below $300,000 for married couples filing jointly, $225,000 for heads of households, and $150,000 for all other filers.

The best part? You can transfer the credit to a registered dealership like Performance Lexus, allowing for an immediate reduction in the purchase price at the time of sale. This means instant savings, without having to wait until tax season.

For Used Vehicles: Up to a $4,000 Tax Credit

A separate credit is available for pre-owned electric and plug-in hybrid vehicles, making it easier than ever to enter the electrified market.

  • Credit Amount: You can receive a credit of up to $4,000, or 30% of the sale price, whichever is less.
  • Sale Price Cap: The vehicle’s sale price cannot exceed $25,000.
  • Age and Ownership: The vehicle must be at least two model years older than the calendar year of purchase (e.g., in 2025, the vehicle must be a 2023 model year or older). It must also be its first qualified resale and purchased from a licensed dealer.
  • Buyer Income Limits: The income caps are lower for used vehicles: $150,000 for married couples filing jointly, $112,500 for heads of households, and $75,000 for all other filers.

2025 Lexus RZ Electric Vehicle
2025 Lexus NX Plug-in Hybrid

Which Lexus Models and Others Qualify?

While eligibility is subject to continuous updates from the IRS, here are the known models that can help you save at Performance Lexus.

New Lexus Models That Qualify:

  • 2025 Lexus RZ 450e & RZ 300e: The all-electric Lexus RZ is a prime candidate for the $7,500 tax credit, as it meets the stringent North American final assembly and battery requirements, provided the specific model’s MSRP is within the $80,000 cap.
  • 2025 Lexus NX 450h+: This is our plug-in hybrid electric vehicle (PHEV), and it is also eligible for the $7,500 tax credit as long as its MSRP is within the $80,000 limit.

Used Lexus Models That May Qualify:

While finding a used Lexus that meets the $25,000 price cap for the used EV credit can be challenging, the 2022 Lexus NX Plug-in Hybrid (450h+) is a known eligible model. If we have a used NX PHEV that meets the pricing requirements in our pre-owned inventory, you could qualify for the up to $4,000 credit.

Other Popular Makes and Models that Qualify (New):

  • SUVs/Trucks: Acura ZDX, Cadillac LYRIQ & OPTIQ, Chevrolet Blazer EV, Equinox EV & Silverado EV, Ford F-150 Lightning & Mustang Mach-E, Honda Prologue, Hyundai IONIQ 5, Kia EV6 & EV9, Tesla Model Y & Cybertruck.
  • Cars: Tesla Model 3.

Other Popular Makes and Models that Qualify (Used):

(Remember, these vehicles must be a 2023 model year or older and have a sale price of $25,000 or less).

  • Chevrolet Bolt EV & Bolt EUV
  • Ford Mustang Mach-E
  • Hyundai IONIQ 5
  • Nissan LEAF
  • Tesla Model 3, Model S, Model X & Model Y

Your Path to an Electrified Lexus Starts Here

Navigating the complexities of EV tax credits can be daunting, but you don’t have to do it alone. The team at Performance Lexus is highly knowledgeable about these incentives and can help you determine your eligibility and find a qualifying vehicle. We invite you to visit us and explore the exceptional Lexus RZ or NX 450h+, and discover firsthand how you can save on your next luxury vehicle.

Experience the Future of Luxury with EV Tax Credits at Performance Lexus

Understanding EV tax credits is crucial for making an informed decision about your next vehicle purchase. At Performance Lexus, we’re committed to helping Ohio drivers navigate these incentives and find the perfect electrified Lexus that fits both their lifestyle and budget. Whether you’re interested in the all-electric Lexus RZ or the plug-in hybrid NX 450h+, our team is here to guide you through the process and ensure you maximize your savings. Visit us today to explore our qualifying vehicles and start your journey toward a more sustainable and luxurious driving experience.


Posted in Hybrid, Lexus Hybrid