Love them or hate them, government tax credits for plug-in vehicle sales can make a significant difference for many buyers. With up to $7,500 available for new vehicle purchases, the credits can make a huge difference for people hesitant to spend top dollar on a new electrified vehicle.
As of 2024, many used models are eligible for the credits, though a lower amount, but there are so many choices that it can be challenging to pick the model best for your needs. We’ve gathered our nine favorite used tax credit-eligible plug-in hybrid models here, so let’s get rolling to see the best used PHEVs available with up to a $4,000 tax credit.
What is the Federal Tax Credit for Pre-Owned Plug-in Electric Vehicles?
The federal government initially offered tax credits for new plug-in vehicle purchases. They were redeemable during the tax process, though buyers could not receive a larger credit than the amount they owed in taxes. That changed in 2024, with the government adding used vehicles to the eligibility list and making the credits instantly redeemable at the time of purchase.
Used EVs, PHEVs, and fuel cell vehicles are eligible for up to a $4,000 credit. Buyers must purchase the vehicle from a dealer, it must be priced at $25,000 or less, and it must be two or more model years old. The shift to making credit available at the time of purchase reduced confusion around the year-end tax credits and made the initial purchase price more reasonable.
To satisfy the rules, a used plug-in hybrid must be:
- Have a sale price of $25,000 or less. The sale price includes all dealer-imposed costs or fees not required by law. It doesn't include costs or fees required by law, such as taxes or title and registration fees.
- Have a model year at least 2 years earlier than the calendar year when you buy it. For example, a vehicle purchased in 2023 would need a model year of 2021 or older.
- Not have already been transferred after August 16, 2022 to a qualified buyer.
- Have a gross vehicle weight rating of less than 14,000 pounds
- Be an eligible FCV or plug-in EV with a battery capacity of at least 7 kilowatt hours
- Be for use primarily in the United States
More information on qualifications can be found here.
Gallery: 2017 Chevrolet Volt
2014-2018 Chevrolet Volt
Perhaps a bit before its time, the Chevrolet Volt didn’t last long. Even so, it offers more than 50 miles of electric range in its later years, a long list of standard tech features, and an agreeable driving experience. It uses a small gas engine as a generator/range extender in addition to propulsion duties, and it’s rated at up to 42 mpg combined. That combination makes the Volt an excellent commuter, and its more than 400-mile combined range means far fewer stops at the gas station.
The five-seat Volt’s interior became nicer and more spacious later in the car’s run, though it was still slightly behind some competitors’ cabins on space and visibility. An eight-inch touchscreen came standard, and the higher Premier trim added navigation and a Bose stereo.
Gallery: 2017 Toyota Prius Prime: First Drive
2017-2021 Toyota Prius Prime
Toyota offers so many Prius variants that it’s enough to make almost anyone’s head spin, but only one has a plug. The Prius Prime’s plug-in hybrid drivetrain combines a gas engine, an electric motor, and a battery pack to deliver up to 25 miles of electric range. It also returns up to 55 mpg in the city, making it an excellent commuter.
Toyota equipped a seven-inch infotainment display as standard, but higher trims stepped up to an 11.6-inch unit. While the automaker has taken steps to improve its infotainment systems in recent years, the 2019 Prius retains the company’s older variants, which are somewhat clunky and difficult to use.
Gallery: 2022 Mitsubishi Outlander
2022 Mitsubishi Outlander PHEV
The Outlander PHEV is Mitsubishi’s only electrified offering in the U.S., and it brings a solid list of standard features, 24 miles of electric range, and surprisingly nice fixtures in the top trim. It comes with all-wheel drive, has DC fast charging, and a long warranty that increases peace of mind for the long haul. The 2022 model received updates that made it quieter and more refined on the road, but its underpowered engine leaves much to be desired. The powertrain’s low-energy delivery means the SUV takes more than nine seconds to reach 60 mph from a standstill.
The Outlander PHEV comes standard with an eight-inch touchscreen running Apple CarPlay and Android Auto. Despite a decent list of features, the system is clunky, and voice commands are frustrating at times. Safety tech is hit-or-miss, with some systems missing, including lane-keep assist.
Gallery: 2018 Honda Clarity Plug-in Hybrid
2018–2019 Honda Clarity Plug-In Hybrid
The Honda Clarity PHEV, sold from 2018 to 2021, is often forgotten. This gas-electric four-door hatchback—also available as a fully electric or one powered by hydrogen—delivers an estimated 48 miles of range. With 212 horsepower, the Clarity was no slouch. Even so, it achieved 42 mpg when running on its gas engine once the battery was depleted.
2017-2018 Audi A3 Sportback e-tron
The Audi A3 debuted in 2016, and the year after, the plug-in hybrid e-tron arrived. It sports a turbocharged four-cylinder engine and an electric motor for a combined 204 horsepower. All-wheel drive and a six-speed dual-clutch transmission gave the car lively driving dynamics and excellent grip, and it offered 17 miles of electric driving range when new. Though not the quickest vehicle around, the e-tron has a 6.5-second 0-60 time, and its battery can be charged in around 2.5 hours on a 240-volt charger.
Audi gave the car an upscale interior with LED lighting, and its wagon shape affords up to 33.7 cubic feet of cargo space with the rear seats folded flat. A 12.3-inch touchscreen came standard, and the 2017 A3 was available with CarPlay and Android Auto in some trims. Other tech features include Bluetooth, ten speakers, and an available Bang and Olufsen sound system.
Gallery: A Long-Term Owner's Review Of The 2014 Cadillac ELR - Video
2014–2016 Cadillac ELR
Cadillac's version of the Chevy Volt. It was more luxurious than the Volt, but carried a hefty price tag. With a starting price of $75,000, the ELR didn't sell well in its day. However, now that the ELR has lost around 75 percent of its value, it's time to consider one. It's probably best to look for a 2016 model, which has an improved suspension and brakes, as well as more power and torque.
Gallery: 2017 Ford Fusion Energi Review and Test Drive - Video
2014–2019 Ford Fusion Energi
The Ford Fusion was a strong seller. In plug-in hybrid form, this mid-size sedan delivered 20 miles of electric range and nearly 40 mpg on gas. The final model years (2017–2019) have improved EPA ratings. However, the battery pack ate up most of the trunk space, so that's something to consider if cargo space is something you require.
Gallery: 2020 Kia Niro PHEV Test Drive
2018-2022 Kia Niro PHEV
The funky Kia Niro PHEV has an impressive 24-mile electric range and a fast recharging time. It’s powered by a 1.6-liter engine and an electric motor that make a combined 139 horsepower and 195 pound-feet of torque. A six-speed dual-clutch transmission sends power to the front wheels only. Performance is modest, but the Niro offers a comfortable ride and a relatively quiet cabin at highway speeds.
The Niro’s tall roof and upright shape afford good headroom and interior space, though three adults in the second row will feel the pinch. A 7-inch infotainment display with Apple CarPlay and Android Auto comes standard, and higher trims get an upgraded stereo with navigation. Kia’s interface isn’t as fancy as others, but that simplicity makes it easier to use while driving and less distracting.
Gallery: 2021 Chrysler Pacifica Hybrid: Review
2017–2022 Chrysler Pacifica Hybrid
The Pacifica is the only plug-in-hybrid minivan ever sold in the U.S. It's a standout if you value solid all-electric range, total range, utility and space for a large family. Earlier model years had some problems, but if you buy a 2020 or later version, the Pacifica Hybrid is a solid offering. The EPA rates it at 33 miles of all-electric range and it can return 31 mpg on the highway. For utility and space, there's no better PHEV.
