Note: this page is for informational purpose only. Please seek tax advice from your tax professional.
This tax credit is effective for used electric vehicles or fuel cell vehicles acquired in 2023 through 2032 for an amount of 30% of the sale price up to $4,000. To be eligible you must meet the following requirements.
|Purchaser||An individual buying the vehicle for use and not for resale and who is not a dependent on another person’s tax return.|
|Vehicle Ownership||The vehicle must have been previously owned but not already transferred to another buyer after August 16, 2022.|
|Eligibility Frequency||This tax credit cannot be claimed more often than every three years.|
|Income Limits||A taxpayer’s adjusted gross income (AGI) must not exceed $150,000 if married filing jointly or a surviving spouse, $112,500 if head of household, or $75,000 for all other filers for either the year taking delivery or the prior year.|
|Sale price||$25,000 or less|
|Model Years||Vehicle model year must be at least 2 years earlier than the calendar year when purchasing.|
|Seller||The vehicle seller must be a dealer rather than an individual.|
|IRS Reporting||Dealers are required to report information to you and the IRS including dealer name and taxpayer ID number, buyer name and taxpayer ID number, sale date and sale price, IRS maximum credit allowed, vehicle identification number, and battery capacity in kWh.|
|IRS Form||8936 Qualified Plug-in Electric Drive Motor Vehicle Credit. The form must be filed with your tax return for the year you took possession.|
For more information see the following IRS website link.