Nissan Leaf EV Tax Credit Boost: $3,750 Savings for 2024 Buyers

Nissan announced in a press release on Monday that the 2024 Nissan Leaf is officially qualified for a $3,750 federal electric vehicle tax credit.

Any new 2024 Leaf models acquired and put into operation by December 31, 2023, will be eligible for the credit, which is half the maximum amount of $7,500. The confirmation follows months of uncertainty on whether the Leaf would be eligible for any tax credits under new regulations passed under the Inflation Reduction Act.

Nissan claims that the Leaf and its battery pack qualify for a $3,750 credit under the IRA’s “battery content” standards because they are made in Smyrna, Tennessee. The reason the Leaf doesn’t qualify for the whole amount wasn’t disclosed by the manufacturer, but the IRA does have other requirements, some of which are connected to the supply of battery raw materials and which the Leaf might not be able to satisfy.

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Nissan’s press release stated that the automaker “has been able to certify” the 2024 Leaf for tax-credit eligibility, indicating that the certification process was the reason for the delay between the launch of the 2024 model and the announcement of the tax credit. However, it made no statement that implied retroactively that 2023 models were also covered by this certification. 

For 2024, Nissan increased the price of the Leaf by $340 to $29,235 with destination, which is the same as for the outgoing model year. It got a new battery in 2023 that significantly increased efficiency. The Leaf had its most recent facelift for the 2017 model year, but with the impending demise of the Chevrolet Bolt EV and EUV, it is currently one of the few remaining reasonably priced EVs.

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The only Nissan EV that uses the CHAdeMO standard for on-the-go fast charging is still the Leaf.

However, beginning in late 2025, Nissan will produce a “elevated” sedan in Mississippi that is anticipated to replace the Maxima and is based on the IMs concept that was initially displayed in 2019. Given the incentives, it is quite likely that it will use batteries made in the United States, making it eligible for at least the $3,750 federal tax credit, if not more.

FAQs (Frequently Asked Questions)

Q1: What is the 2024 Nissan Leaf’s federal electric vehicle tax credit worth?

A: The 2024 Nissan Leaf qualifies for a federal electric vehicle tax credit of $3,750.

Q2: When can I claim the $3,750 tax credit for the 2024 Nissan Leaf?

A: To be eligible for the $3,750 tax credit, you must acquire and put into operation a new 2024 Nissan Leaf by December 31, 2023.

Q3: Why is the tax credit for the 2024 Nissan Leaf $3,750 and not the maximum $7,500?

A: The 2024 Nissan Leaf qualifies for a $3,750 tax credit due to the “battery content” standards of the Inflation Reduction Act, as the vehicle and its battery pack are manufactured in Smyrna, Tennessee.

Q4: What led to the delay in confirming the 2024 Nissan Leaf’s eligibility for the tax credit?

A: Nissan certified the 2024 Leaf for tax-credit eligibility after a certification process, which explains the delay. There is no retroactive coverage for the 2023 models.

Q5: Has the price of the 2024 Nissan Leaf changed compared to the previous model year?

A: The price of the 2024 Leaf has increased by $340, bringing it to $29,235 with destination, which is the same as the outgoing model year.

Q6: What are some notable features of the 2024 Nissan Leaf?

A: The 2024 Leaf received a new battery in 2023 for improved efficiency and remains one of the few reasonably priced electric vehicles, especially with the discontinuation of the Chevrolet Bolt EV and EUV.

Q7: Does the 2024 Nissan Leaf support fast charging, and what standard does it use?

A: Yes, the 2024 Nissan Leaf supports fast charging using the CHAdeMO standard.

Q8: What future Nissan vehicle is expected to be eligible for the federal tax credit, and when can we expect it?

A: Beginning in late 2025, Nissan plans to produce an “elevated” sedan in Mississippi, which may replace the Maxima and is based on the IMs concept. It is anticipated to use batteries made in the United States and become eligible for the $3,750 federal tax credit or more.

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