![\"2021](\"https:\/\/images.hgmsites.net\/lrg\/2021-jeep-wrangler_100759633_l.jpg\" "\\"2021")
<\/p>\n2021 Jeep Wrangler 4xe<\/p>\n<\/div>\n
The revamped credit under IRA, called the Clean Vehicle Credit<\/a>, only applies to plug-in hybrids and EVs that are American-made<\/a>. And with the exception of a handful of PHEVs from Chrysler, Ford, Jeep, and Lincoln, plus a few more select models from Audi, BMW, and Volvo, EV tax credit eligibility<\/a> has been drastically cut.<\/p>\n Do your calculations on cost, fuel, electricity<\/strong><\/p>\n Until recently, plug-in hybrids have been a smart choice if you value low operating costs and the best overall value\u2014while maximizing battery resources and making, in most cases, a greener choice versus hybrids.\u00a0<\/p>\n Loren McDonald, founder and chief analyst of the consultancy EVAdoption, cites the Kia Niro Plug-In Hybrid as an example. It previously qualified for a $4,585 tax credit, nearly negating the $4,900 price difference with the Niro Hybrid. But now? Well, it depends on whether or not you still might be eligible for state or even local incentives applying to plug-in hybrids.<\/p>\n \u201cOpting for the PHEV version may have been a no-brainer for many buyers,\u201d McDonald notes, when adding in state and utility incentives, plus lower fuel costs, but now it will require more consideration.\u00a0<\/p>\n While it\u2019s certainly too early to tell based on market data, there may be cases where prospective buyers turn around and get a hybrid instead.\u00a0<\/p>\n U.S. EV and PHEV sales share – EVAdoption<\/p>\n<\/div>\n PHEVs have seen steady growth along with EVs over the past few years. And while EVs appear to be locked onto a rapid-rise trendline, there\u2019s not as strong a long-term prognosis for PHEVs. As of July\u2014before the passage of the IRA\u2014S&P expected that in 2030 that just 5% of U.S. new vehicle sales would be plug-in hybrids, versus 47% fully electric vehicles. That\u2019s up from the 1.5% PHEVs and 5.5% EVs anticipated by EV Adoption for the second quarter of 2022.\u00a0<\/p>\n No tax credit, yet PHEV sticker prices rising?<\/strong><\/p>\n There have been a few plug-in hybrid market introductions in recent weeks, and the pricing decisions have been a bit surprising. Despite the loss of the tax credit, these prices on newly ineligible PHEVs have gone up versus eligible predecessors.\u00a0<\/p>\n Mitsubishi confirmed one such example this past week. Its 2023 Outlander Plug-In Hybrid will start at $41,190, including the mandatory $1,345 destination fee. That\u2019s up nearly $3,000 in sticker price, from $38,240 for 2022.\u00a0<\/p>\n In bottom-line money for most purchasing households, the Outlander PHEV is up more than $9,500 versus last year. The Outlander PHEV used to be eligible for the federal EV tax credit\u2014an amount of $6,587 based on its battery capacity. The 2023 version, with its larger 20-kwh battery pack, would have been eligible for the full $7,500 amount had it reached the market before the August 16 signing.\u00a0<\/p>\n 2023 Mitsubishi Outlander Plug-In Hybrid<\/p>\n<\/div>\n As we reported in a first drive of the Outlander PHEV<\/a>, this model\u2019s bigger battery, stronger electric motors and expanded electric-only operation provide an excellent 38 all-electric miles of operation plus a seamless transition between power sources in hybrid mode. It represents the best technology from the Japanese brand and is a strong alternative to the Toyota RAV4 Prime<\/a>, best that vehicle with an additional row of seats.\u00a0<\/p>\n Kia also, since the tax credit demise, hiked the base price of its Sorento Plug-In Hybrid<\/a> by more than $5,000 for 2023, versus 2022. That roomy, three-row model was also eligible for $6,587 under the outgoing EV tax credit, meaning that the 2023 Sorento PHEV, at $51,185, now costs about $11,600 more than last year\u2019s model. That\u2019s for a \u201cstreamlined\u201d lineup putting all the focus on the top-of-the-line SX-P trim, including all-wheel drive, a suite of driver-assistance features, and an AC inverter good for powering a laptop.\u00a0<\/p>\n Will more PHEVs be made in America?<\/strong><\/p>\n While Stellantis’ Jeep Wrangler 4xe<\/a> and Chrysler Pacifica Hybrid are two of the top-selling American-built plug-in hybrids for which the EV tax credit still apply, the buyers of the popular Toyota RAV4 Prime and Prius Prime<\/a> can no longer claim it due to their Japanese assembly.\u00a0<\/p>\n The loss of the EV tax credit for imported models also includes some of the PHEVs with the longest electric range, such as all but one of Volvo\u2019s Recharge PHEVs recently given larger battery packs<\/a>. While the XC60 Recharge PHEV<\/a> we drove last year is among those counted out for their European assembly, Volvo\u2019s South Carolina\u2013built S60 T8 Recharge sedan, at 41 EPA-rated electric miles, is its sole PHEV that currently qualifies.\u00a0<\/p>\n![\"U.S.](\"https:\/\/images.hgmsites.net\/lrg\/u-s-ev-and-phev-sales-share--evadoption_100858439_l.jpg\" "\\"U.S.")
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![\"2022](\"https:\/\/images.hgmsites.net\/lrg\/volvo-xc60_100811774_l.jpg\" "\\"2022")
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