H & H ACCOUNTING AND TAX SERVICES
Electric Vehicle Credits
Clean Vehicle Credit
You may receive a credit if you buy a new qualified plug-in electric vehicle (EV) or fuel cell electric vehicle (FCV).
Income limits
In order to qualify for the credit, your modified adjusted gross income (AGI) may not exceed:
$300,000 MFJ or a QSS,
$225,000 HOH, or
$150,000 Single or MFS.
You can use your modified AGI from the year you take delivery of the vehicle or the year before.
Qualified vehicles
To qualify, a vehicle must:
Have a battery capacity of at least 7 kilowatt
hours.
Have a gross vehicle weight rating of less
than 14,000 pounds.
EVs must be made by a qualified manufacturer.
Undergo final assembly in North America.
Meet critical mineral and battery component
requirements.
The vehicle’s manufacturer suggested retail price (MSRP) cannot exceed:
$80,000 for vans, sport utility vehicles, and pickup trucks, or
$55,000 for any other vehicle.
The seller must report required information to you at the time of the sale.
Credit amount
If the vehicle meets only the critical minerals requirement or the battery components requirement, the credit is $3,750. If the vehicle meets both requirements, the credit is $7,500.
Nonrefundable credit
Any excess credit cannot be applied to future tax years.
Assignment of credit
Instead of taking a credit on your tax return, you may assign the credit to the dealer as a form of either a partial payment or down payment on the vehicle. If you do this but do not qualify for the credit based on your AGI, you will have to pay the credit back when you file your tax return for the year.
Lookup tool
To find out which vehicles qualify for the credit, and the amount of the credit the vehicle qualifies for, click on the button below.
Previously-Owned Clean Vehicle Credit
You may receive a credit if you buy a used qualified plug-in electric vehicle (EV) or fuel cell electric vehicle (FCV).
Income limits
In order to qualify for the credit, your modified adjusted gross
income (AGI) may not exceed:
$150,000 MFJ or a QSS,
$112,500 HOH, or
$75,000 Single or MFS.
You can use your modified AGI from the year you take delivery of the vehicle or the year before.
Qualified vehicles
To qualify, a vehicle must:
Have a sale price of $25,000 or less.
Have a model year at least 2 years earlier than the calendar year when you buy it. For example, a vehicle purchased in 2024 would
need a model year of 2022 or older.
Not have already been transferred after August 16, 2022, to a qualified buyer.
Have a gross vehicle weight rating of less than 14,000 pounds.
Be an eligible FCV or plug-in EV with a battery capacity of at least 7 kilowatt hours.
Be for use primarily in the United States.
The sale qualifies only if:
You purchase the vehicle from a dealer, and
For qualified used EVs, the dealer reports required information to you at the time of the sale and to the IRS.
Credit amount
The amount of the credit is 30% of the sale price up to a maximum credit of $4,000.
Nonrefundable credit
Any excess credit cannot be applied to future tax years.
Assignment of credit
Instead of taking a credit on your tax return, you may assign the credit to the dealer as a form of either a partial payment or down payment on the vehicle. If you do this but do not qualify for the credit based on your AGI, you will have to pay the credit back when you file your tax return for the year.
Lookup tool
To find out which vehicles qualify for the credit, and the amount of the credit the vehicle qualifies for, click on the button below.
This page contains general information for taxpayers and should not be relied upon as the only source of authority. Taxpayers should seek professional tax advice for more information.
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