The Nissan Leaf is one of the most affordable electric vehicles (EVs) on the market, but it just got even cheaper. The 2024 model year of the Leaf has regained eligibility for part of the U.S. federal EV tax credit, which can lower the price by up to $3,750. This makes the Leaf a more attractive option for buyers who want to switch to a greener and more economical way of driving. But how does the Leaf compare to other EVs in terms of performance, range, features, and value? Here’s what you need to know.
What is the EV tax credit and how does it work?
The EV tax credit is a government incentive to encourage the adoption of electric vehicles in the U.S. The credit can reduce the income tax liability of eligible buyers by up to $7,500, depending on the battery capacity and the manufacturer’s vehicle sales volume. The credit is not a rebate or a cashback but rather a reduction of the tax owed at the end of the year. The credit can only be claimed by the original purchaser of a new and qualifying EV and cannot be transferred or carried over to future years. The credit also phases out once a manufacturer sells 200,000 eligible vehicles in the U.S., meaning that some popular EVs, such as the Tesla Model 3 and the Chevrolet Bolt, are no longer eligible for the full credit or any credit.
How did the Nissan Leaf regain the EV tax credit?
The Nissan Leaf was one of the first mass-market EVs to hit the U.S. market in 2010, and it was eligible for the full $7,500 credit until 2019 when Nissan reached the 200,000 sales threshold. Since then, the Leaf has been ineligible for any federal tax credit, which made it less competitive against newer and cheaper EVs. However, in 2022, the U.S. Congress passed the Inflation Reduction Act, which modified the EV tax credit program to include new requirements and incentives. One of the changes was to introduce a new category of EVs that qualify for a partial credit of $3,750, based on the battery component sourcing and the critical minerals content of the vehicle. The battery component sourcing requirement means that at least 50% of the battery components must be manufactured in the U.S., while the critical minerals requirement means that at least 75% of the critical minerals used in the battery must be sourced from the U.S. or its allies. The Nissan Leaf, which is built in Smyrna, Tennessee, and uses a 40-kWh or a 60-kWh battery pack, meets the battery component sourcing requirement but not the critical minerals requirement. Therefore, it qualifies for the $3,750 credit but not the full $7,500 credit. The credit applies to the 2024 model year of the Leaf, which was sold on or after March 6, 2024, and it will last until December 31, 2024, or until Nissan sells another 200,000 eligible vehicles, whichever comes first.
What are the features and specs of the 2024 Nissan Leaf?
The 2024 Nissan Leaf is a compact hatchback that seats five passengers and offers two battery options and two trim levels. The base trim, the Nissan Leaf S, has a 40-kWh battery pack that provides 149 miles of EPA-estimated range and a 147-horsepower electric motor that delivers 236 pound-feet of torque. The starting MSRP of the Leaf S is $28,140, but with the $3,750 tax credit, it can be reduced to $24,390.
The higher trim called the Nissan Leaf SV Plus, has a 60-kWh battery pack that provides 212 miles of EPA-estimated range and a 214-horsepower electric motor that delivers 250 pound-feet of torque. The starting MSRP of the Leaf SV Plus is $35,140, but with the $3,750 tax credit, it can be reduced to $31,390. Both trims come with a standard 8-inch touchscreen infotainment system with Apple CarPlay and Android Auto compatibility, a six-speaker sound system, a rearview camera, automatic climate control, keyless entry and ignition, and a suite of advanced driver assistance features, such as forward collision warning, automatic emergency braking, blind spot monitoring, rear cross-traffic alert, lane departure warning, and lane keeping assist.
The Nissan Leaf SV Plus adds some extra features, such as 17-inch alloy wheels, fog lights, adaptive cruise control, a leather-wrapped steering wheel, a navigation system, and an optional technology package that includes LED headlights, a power driver’s seat, a surround-view camera system, and a ProPilot Assist system that combines adaptive cruise control and lane keeping assist to provide semi-autonomous driving on highways.