Plug-in hybrid vehicles

If you typically drive 15-40 miles per day, you should consider a PHEV as they provide you the experience of driving an EV but with the fallback of a gasoline engine. Most PHEVs can fully recharge from a standard 120V wall-socket in 6-8 hours, so if you plug-in at home each night you will have a full charge by morning.

Helpful Tip: Even if you can get away with electric-only use, it is wise to use the gasoline engine from time to time to keep it operating smoothly. Plus, the gasoline engine can provide additional heat to warm the car in colder climates.

You can charge your PHEV at home or on the road with a few options:

Standard home wall outlet (known as Level 1 charging): a common 120V power outlet provides about 3-5 miles of range per hour charged. A good practice of many PHEV owners is to charge overnight, where you can achieve a 30-mile range in 6-8 hours, allowing you to start your day with a full battery.

Upgraded home wall outlet + charging box (known as Level 2 charging): a conventional 240V power outlet—like one your washing machine uses—provides power at a faster 10-20 miles of range per hour charged. You will need a charging regulator box to protect the vehicle against things like power surges, which can cost $500-$1000+ before installation. For any modifications to your home’s power system, consult an electrician to add 240V outlets and ensure your home can support the proper amperage.

Public chargers (also known as Level 2 charging): public chargers can also be used on PHEVs, though you should evaluate if the cost is justified—because the price of charging at public chargers varies, and it may be cheaper to simply use the gasoline already in your car.

Most PHEVs do not support direct current fast charging (also known as Level 3 charging); that would be like trying to fill a small bucket with a fire hose.

Yes, if you and the vehicle you are purchasing meet the IRS’s qualifications. If so, your purchase of that qualified used plug-in hybrid vehicle could enable you to get federal income tax credits of either $4,000 or 30% of the price of the vehicle, whichever amount is less. The Treasury Department has specified the following eligibility requirements: 

– The vehicle must be at least 2 years old; this means if you’re purchasing a vehicle in 2023, it must be at least a 2021 model or older 

– The vehicle sale price must not exceed $25,000 

– The vehicle must have a plug-in battery with capacity of at least 7kWh 

– The vehicle must be purchased from a licensed dealer like CarMax, not from a private party 

– The buyer’s adjusted gross income cannot exceed $75,000 for a single-filing taxpayer, $112,000 for head of household, or $150,000 for joint-filing taxpayers 

– The buyer cannot have claimed another used EV credit within the last 3 years 

Additionally, the used credit is only available once per vehicle (so once a used vehicle credit has been claimed on a unique vehicle, that vehicle is no longer eligible for the credit in future sales). You can view the list of qualifying vehicles directly on the Treasury Department’s website. This list is continually updated. 

Note: This FAQ is not intended to be an exhaustive list of the qualifications and requirements related to this tax credit. CarMax cannot provide tax advice. Consider consulting an accountant or tax attorney with questions about this tax credit.

You do not necessarily have to plug-in a PHEV*, though it provides the most efficient charging source. The battery can recharge by drawing power from the engine or leveraging regenerative braking.   

* Some PHEVs, like the Audi Q5 Plug-in Hybrid, do require plugging in to fully recharge their battery. 

All manufacturers call them plug-in hybrids, though some manufacturers add additional branding to their models: 

– Ford uses ‘Energi’, such as the Ford Fusion Energi

– Jeep uses ‘4xe’, like the Jeep Wrangler 4xe

– Toyota uses ‘Prime’, like the Toyota Prius Prime

– Volvo uses ‘Recharge’*, such as the Volvo S60 Recharge 

* Prior to 2020, Volvo labeled their PHEVs as ‘T8 twin-charge’ models, so you may see different names used depending on year; also, the Volvo XC40 Recharge is a fully-electric vehicle, not a plug-in hybrid, so that one is an exception. 

PHEVs have low relative EV-only range because most drivers only drive 10-20 miles per day.  A plug-in hybrid allows owners to handle daily tasks like commuting or errands using just the battery, but allows for long driving and road trips without concern for charging stations. 

Energy must be used to get any vehicle up to speed, and typically that energy comes from either a fuel source or battery pack in your car. 

With a traditional braking system, pushing your foot on the pedal triggers the brake components to compress together, creating resistance to slow your vehicle's wheels. Any energy you had used to get up to speed is then lost as heat. 

With a regenerative braking system, your wheels are connected to a motor that recaptures some of the energy used to get your vehicle up to speed, which is then converted back to stored power in the battery (hence the name 'regenerative'). 

Most electric vehicles, including full EVs, HEVs, and PHEVs, feature both braking systems and allow you to select whether to use both or only regenerative braking. Because most regenerative braking systems kick in immediately after releasing your accelerator pedal (no need to apply the brake pedal), you can drive while using your traditional brakes significantly less often; this is commonly called one pedal driving.