Electric Vehicle Federal Tax Credit
The Inflation Reduction Act, signed into law on August 16, 2022, includes a Clean Vehicle Tax Credit and a Previously-Owned Clean Vehicle Tax Credit, which allows eligible individuals to claim a federal tax credit for the purchase of eligible new and used electric vehicles.
New EV Federal Tax Credit
The Clean Vehicle Tax Credit allows eligible individuals to claim a federal tax credit for the purchase of eligible NEW electric vehicles.
Am I Eligible for the New EV Federal Tax Credit?
To find out if you are eligible for the Used EV Federal Tax Credit, we urge you to consult with your own tax, legal or accounting professional or advisor regarding their eligibility to claim the Clean Vehicle Tax Credit, including whether their modified adjusted gross income is below the applicable thresholds ($150,000 for a single filing taxpayer, $225,000 for a head of household, and $300,000 for a joint filer).
Used EV Federal Tax Credit
The Previously-Owned Clean Vehicle Tax Credit allows eligible individuals to claim a federal tax credit for the purchase of eligible USED electric vehicles. The credit is equal to the lesser of $4,000 or 30% of the sale price and is only permitted for used electric vehicles with a model year which is at least 2 years earlier than the calendar year in which the sale occurs.
Am I Eligible for the Used EV Federal Tax Credit?
To find out if you are eligible for the Used EV Federal Tax Credit, we urge you to consult with your own tax, legal or accounting professional or advisor regarding their eligibility to claim the Previously-Owned Clean Vehicle Tax Credit, including whether their modified adjusted gross income is below the applicable thresholds ($75,000 for a single filing taxpayer, $112,500 for a head of household, and $150,000 for a joint filer) and whether the individual has claimed a Previously-Owned Clean Vehicle Tax Credit during the 3-year period ending on the date of sale, which would render the individual ineligible to claim this credit.