Note: this page is for informational purpose only. Please seek tax advice from your tax professional.
Tax credits are available for up to $7,500 for vehicles purchased new in 2023 through 2032. Starting April 18, 2023, the tax credit availability depends on the vehicle’s manufacturer’s suggested retail price, its final assembly location, battery component and/or critical mineral sourcing, and your modified adjusted gross income (AGI). Specific requirements and a lookup table based on model year, make, and vehicle type are located on at this website link.
The vehicle must be purchased new for your own use as an individual (or for individuals who are partners in a partnership or S corporation) in the U.S. To be eligible, your adjusted gross income may not exceed $300,000 for married couples filing jointly, $225,000 for heads of households, or $150,000 for other filers.
You will need documentation about the vehicle from the dealer and the dealer is required to report your name and taxpayer identification number to the IRS for you to be eligible to claim the tax credit. You will need to complete Form 8936 and file it with your tax return, providing your vehicle’s vehicle identification number.
If you took delivery of a new electric vehicle between December 31, 2021, and April 18, 2023 the tax credits are slightly different and depend on the battery capacity and if the critical minerals are sourced either in the U.S. or a country in which the U.S. has a free trade agreement in effect. This website link contains a list of tax credit qualified vehicles purchased between December 31, 2021, and April 18, 2023.