How to qualify for the Used Clean Vehicle Tax Credit
Purchasing a used clean vehicle
| Taxpayer Eligibility | |
|---|---|
| Taxpayer income and status |
The taxpayer's modified adjusted gross income for either the current year or prir year must be:
|
| Taxpayer status |
Taxpayer must be an individual who is not a dependent that is claimed on another taxpayer's tax return and must be buying the vehicle for use and not resale. |
| Taxpayer eligibility |
Taxpayer must not have claimed this credit in the 3-year period prior to the sale of the qualifying vehicle. Unsure if you qualify? Consult your tax advisor. Note: 2023 is the first year that this credit can be claimed. |
| Vehicle Eligibility | |
| Vehicle type and age | The vehicle is an electric vehicle, plug-in hybrid electric vehicle, or fuel cell vehicle, and the model year is at least two years earlier than the calendar year of your purchase. |
| Vehicle sale price and dealer | Vehicle sale price is $25,000 or less and the vehicle is sold by a licensed dealer registered with the IRS. The sale price of a previously-owned clean vehicle is the total sale price agreed upon by the buyer and seller in a written contract at th time of sale, including any delivery chargers and after the application of any incentives, but excluding separately-stated taxes and fees required by State or local law. |
| Previous transfer status | To be qualified sale, a transfer must be the first transfer since August 16, 2022, as shown by vehicle history, of a used clean vehicle after the sale to the person with whom the original use of such vehicle commenced. Check the vehicle history report of the vehicle and see frequently asked questions about eligibility rules. |
| Time of sale report (also known as seller report) | Dealer provides buyer a time of sale report (also called a selle report), which will have information such as dealer name, address, VIN, make, model, placed in service date, and maximum credit. |
If you meet ALL of the above, you may qualify for a tax credit of 30% percent of the sale price up to a maximum of $4,000.
*Eligible used clean vehicles must weigh less than 14,000 pounds, have at least a 7 kilowatt hours battery, and must have been placed into service starting January 1, 2023, or later.