A 2022 Audi e-tron electric vehicle (EV) is eligible for a federal tax credit if it was bought on or before August 16, 2022, and put into service before January 1, 2023. Any 2020 e-tron purchased after August 16, 2022, is not eligible for a federal tax credit due to new manufacturing requirements imposed by the Inflation Reduction Act of 2022.

You used to be able to get federal tax credits anywhere from $2,500 to $7,500 to offset the price of purchasing a new electric vehicle—from upfront costs to expensive

car insurance

. However, new laws have drastically escalated the requirements for vehicles to qualify—so much so that most manufacturers have had to adjust their pricing and manufacturing practices to comply.

While the Audi e-tron had tax credit eligibility for much of 2022, you wouldn’t be able to take advantage of that if you bought one now. Should you still even buy one, then? In this article, we’re covering everything you need to know about the 2022 Audi e-tron regarding the new tax credit eligibility requirements and the pros and cons of buying this EV.

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Is the 2022 Audi e-tron still eligible for a federal tax credit?

The 2022 Audi e-tron was eligible for a federal

electric car tax credit

until August 16, 2022. Any 2022 e-tron bought after this date is no longer eligible for a tax credit due to new manufacturing regulations set by the Inflation Reduction Act of 2022.

Federal tax credits of up to $7,500 for EV purchases were introduced in 2010 to encourage drivers and manufacturers alike to invest in eco-friendly vehicles. The only stipulation was that automakers who sold more than 200,000 electric vehicles would no longer be eligible.

Tesla

and General Motors were the first manufacturers to meet that cap, thus ending their eligibility.

Audi had yet to meet this sales cap, but it would hardly matter after August of 2022 when the Inflation Reduction Act was signed into effect, restricting federal tax credits to electric vehicles whose final assembly was completed in North America.

The 2022 Audi e-tron had its final assembly in Germany, thus eliminating it from any tax credit eligibility after August 2022. Currently, the

Audi Q5

PHEV is the only electric offering from Audi that could potentially qualify for a federal tax credit, since its final production occurs in San Jose Chiapa, Mexico.

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What you should know about the new federal EV tax credit requirements

Even electric vehicles that have their final assembly in North America are subject to other new eligibility requirements imposed by the Inflation Reduction Act. As a result, no electric vehicle on the current market is eligible for a tax credit, but manufacturers like Audi are trying to pivot fast to meet these requirements.

Regardless of the make or model, buyers must fall below certain income limits to qualify for the tax credit. Single car buyers can’t make more than $150,000 a year, and joint car buyers can’t make more than $300,000.

Further restrictions went into effect at the start of 2023, limiting tax credits to vehicles under a price limit. Standard sedans and green vehicles can only qualify for a tax credit if they cost less than $55,000, while trucks, vans, and SUVs can’t exceed a cost of $80,000. Used electric vehicles will only qualify if they cost less than $25,000.

The final and most arduous requirement for automakers to meet concerns the construction of their batteries. An EV’s battery must contain a certain percentage of materials sourced from North America or a U.S. free-trade partner and meet the North American assembly requirement to qualify for the federal tax credit.

While these new requirements may seem stifling, they intend to encourage electric automakers to invest in North American production and prioritize accessible pricing. However, many manufacturers continue to hurdle toward that 200,000 sales cap, with

Nissan

and

Ford

expected to surpass this limit early in 2023.

MORE: 2022 Audi e-tron price

Other electric vehicle incentives

While you may not be able to get a large tax credit from the federal government, you can look elsewhere for electric vehicle and plug-in hybrid incentives at the state and local levels.

Consider

California’s electric vehicle incentives

, which offer rebates of up to $7,000 across the entire state. On the flip side,

Florida electric vehicle incentives

are left in the hands of regional authorities, ranging from a $100 rebate from the Kissimmee Utility Authority to $7,500 tax credits from the Jacksonville Electric Authority.

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Is the 2022 Audi e-tron still worth buying?

Regardless of federal tax credit eligibility, the 2022 Audi e-tron is a formidable luxury electric vehicle for those with the budget for it.

Despite its sci-fi name, this particular

Audi electric car

avoids the eco-friendly trend of hyper-stylized design and over-the-top performance, opting for a more traditional SUV design and feel. This design choice has garnered the 2022 e-tron an 8/10 rating from Car and Driver, and an overall rating of 7.7/10 from Edmunds, including a 9/10 rating for comfort.

Naturally, even the traditional Audi styling and execution comes at a price, starting to the tune of $67,095 for the entry-level 2022 e-tron Premium. And while the

Audi e-tron range

doesn’t blow any competitors out of the water at a maximum of 222 miles, its lightning-fast charging times and 355-horsepower AWD powertrain more than makeup for it!

The 2022 e-tron can recharge 80% of its battery in just 30 minutes with a DC fast charging station. Level two charging takes a little bit longer at nine hours to achieve a full charge, but that’s good enough to replenish overnight and tackle a new day in your ultra-comfortable and stylish Audi.

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What to buy instead of an Audi e-tron

You can choose from just about any other automaker under the sun if the 2022 Audi e-tron doesn’t seem worth it without a federal tax credit. Everyone from

Kia

BMW

is selling electric vehicles these days, but most don’t qualify for the current tax credit eligibility requirements.

Many of the electric vehicles that are assembled in North America no longer

qualify for federal tax credits

because they are expensive luxury vehicles or they’re manufactured by automakers that have already hit their sales cap. For example,

Rivian’s electric car

, the R1S, exceeds the $80,000 price cap for SUVs, while makers like Tesla and

Chevrolet

have already exceeded 200,000 electric vehicle sales.

So what are your other options for an electrified SUV? Here are our top three picks, whether you’re looking for a lower price tag or better electric performance.

If you really want the federal tax credit: 2023 Ford Mustang Mach-E

Starting price: $48,195

Possible tax credit: $7,500

Despite all the new regulations, the

Ford Mustang Mach-E remained eligible for a tax credit

until January 2023, and it could become eligible again if Ford resources its battery materials to North America.

Even without a federal tax credit, the 2023 Mustang Mach-E has the Audi e-tron beat by nearly $20,000 when it comes to starting price—and it gets better range with a maximum of 312 miles. Climbing up the trim ladder will close the gap between the Mach-E and e-tron’s MSRPs, but you’ll get all the premium features with better overall execution.

The 2023 Mustang Mach-E is offered with an array of battery options and RWD or AWD, allowing you to configure it to meet your driving needs. Entry-level models tap out at 346 horsepower, but the Mustang Mach-E GT models crank out an impressive 480 horsepower. A level-two charger can replenish the Mach-E’s battery overnight.

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If you just want a great PHEV: 2023 Audi Q5 TSFI e quattro

Starting price: $56,595

Possible tax credit: $7,500

If you’re still craving an Audi that could earn you some relief from the federal government, consider the 2022 or 2023 Audi Q5 PHEV. These models are currently assembled in Mexico and are the most likely to be tax-credit eligible out of Audi’s electric line-up.

The Q5 is a staple of the luxury SUV segment, and the 362-horsepower plug-in hybrid powertrain variant is worth the additional cost if you’re open to a slow transition into electric car ownership. Even without considering the eco-friendly benefits, this is the most powerful configuration for the Q5, capable of zipping from zero to 60 mph in just 4.5 seconds.

That said, the eco-friendly benefits are a tad slim. The 2023 Q5 PHEV only has 23 miles of all-electric driving range and a combined hybrid EPA rating of 27 mpg. However, it may still be worth it if you simply want the satisfaction of owning an Audi with electrified benefits.

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If you want full-electric power: 2023 Tesla Model X

Starting price: $111,630

Maximum range: 348 miles

You’ll pay top dollar for it, but the

Tesla Model X

is the way to go if you’re content with missing out on a tax credit and would rather get the most out of your electric car’s performance.

With the Tesla Model X’s standard 670-horsepower electric motor and top-tier Plaid’s neck-breaking 1020-horsepower configuration—it’s worth the extra bucks. Not to mention, both models achieve ground-breaking zero-to-60 times in the range of 2.1 to 3.8 seconds.

You can top off your Model X battery in less than 30 minutes with a Tesla Supercharger, but charging at home doesn’t disappoint either. It only takes six hours to charge your Model X at home, so long as you invest in the Tesla WallCharger, too.

MORE: How to choose an eco-friendly car

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