2024 Nissan Leaf Becomes Eligible for $3,750 EV Tax Credit

Written by Mark Kane for InsideEVs

This will effectively lower the cost of the entry-level version to $25,485.

Nissan has just announced that the new 2024 Nissan Leaf will qualify for the $3,750 federal tax credit through December 31, 2023.

Previously, despite local production of the Nissan Leaf (as well as its battery cells and battery packs) in Smyrna, Tennessee, the model was not eligible for the federal tax credit of up to $7,500, under the Inflation Reduction Act of 2022 (IRA)'s requirements.

The new 2024 model year was introduced in June , but at the time, there was no indication of the upcoming change related to the EV tax credit eligibility.

Today, Nissan confirmed that it "has been able to certify that 2024 LEAF vehicles produced in the U.S. meet the 'battery component' requirements of the Inflation Reduction Act of 2022 and may now qualify for the $3,750 tax credit."

In other words, Nissan secured one of the two main battery requirements - the one related to battery components (50 percent of the value of battery components must be manufactured or assembled in North America). This qualifies the Leaf for the $3,750 credit.

To qualify for the full $7,500 incentive, Nissan would have to also comply with the critical minerals requirement (40 percent of the value of critical minerals need to be mined or processed in the United States or FTA countries, or recycled in North America).

The 2024 Nissan Leaf will qualify for the incentive through the end of this year but it's not clear whether it will qualify in 2024, because on January 1, 2024, the two requirements will tighten to respectively 60 percent and 50 percent.

Nonetheless, those who purchase the 2024 Nissan Leaf this year might get up to a $3,750 incentive (assuming they meet all purchase and income qualifications).

The entry-level Nissan Leaf S with a 40-kilowatt-hour battery and up to 149 miles of EPA Combined range, starts at an MSRP of $28,140 (+ $1,095 DST). After deducting the federal tax credit, the effective cost is $25,485. On top of that might be applied other state/local incentives.

The SV Plus version, with a larger 60-kilowatt-hour battery and 212 miles of range, effectively would be available starting at $33,535.

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"For more than a decade, the Leaf has been one of the most attainable electric vehicles on the market," Judy Wheeler, divisional vice president, Nissan U.S. Sales and Regional Operations said in a statement. "Eligibility for part of the federal EV tax credit puts Leaf within reach for even more customers who are ready to make the switch to an EV."