If you bought a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D.
You may qualify for a credit up to $7,500 for buying a qualified new car or light truck. The credit is available to individuals and businesses.
* For your own use, not for resale
* For use primarily in the U.S.
To qualify, a vehicle must:
* Have an external charging source
* Have a gross vehicle weight rating of less than 14,000 pounds
* Be made by a manufacturer that hasn't sold more than 200,000 EVs in the U.S.
You can find your vehicle's weight on the vehicle's window sticker.
Vehicles Purchased After August 16, 2022: New Final Assembly Requirement
If you buy and take delivery of a qualified electric vehicle between August 17, 2022 and December 31, 2022, the same rules apply, plus the vehicle must also undergo final assembly in North America.
To see if your model meets the assembly requirements, check the Department of Energy's page on Electric Vehicles with Final Assembly in North America.
https://afdc.energy.gov/laws/electric-vehicles-for-tax-credit.
Because some models are built in multiple locations, you should check both criteria for any specific vehicle.
Purchase date vs. delivery date
If you entered a written binding contract to buy a vehicle after December 31, 2021, and before August 16, 2022, but took delivery on or after August 16, 2022, you may elect to claim the credit based on the prior rules. To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle. Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return.
If you purchased a vehicle between August 16, 2022 and December 31, 2022 but don't take delivery of the vehicle until 2023, see Credit for New Clean Vehicles Purchased in 2023 and After
https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
In general, a written binding contract:
* enforceable under state law, based on the state and relevant facts and circumstances, and
* does not limit the damages a buyer or seller can receive for a breached contract, such as forfeiting a deposit or paying a pre-determined dollar amount or a percentage of the total contract price for the vehicle.
An indication of a binding contract is if a buyer has made a significant non-refundable deposit or down payment.
To claim the credit for a vehicle you took possession of in 2022, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your 2022 tax return. You will need to provide your vehicle's VIN.
https://www.irs.gov/forms-pubs/about-form-8936
If you missed claiming a credit for an electric vehicle purchased before 2022, you may be able to claim it by filing an amended return for the tax year when you took possession of the vehicle. The credit for qualified 2-wheeled plug-in electric vehicles expired in 2022. If you bought a 2-wheeled vehicle in 2021, but placed it in service during 2022, you may still be able to claim the credit for 2022. If you bought it after 2021, you can't claim the credit.
Complete Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit Including Qualified Two-Wheeled Plug-in Electric Vehicles and New Clean Vehicles, and file it with your tax return for the year you took possession of the vehicle to claim the used clean vehicle credit. You will need to include the vehicle identification number (VIN) on the form.
Beginning January 1, 2023, if you buy a qualified used electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a used clean vehicle tax credit (also referred to as a previously owned clean vehicle credit). The credit equals 30% of the sale price up to a maximum credit of $4,000.
The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes.
You can't apply any excess credit to future tax years. Purchases made before 2023 don't qualify.
You may qualify for a credit for buying a previously owned, qualified plug-in electric vehicle (EV) or fuel cell vehicle (FCV), including cars and light trucks, under Internal Revenue Code Section 25E.
To qualify, you must:
* Be an individual who bought the vehicle for use and not for resale
* Not be the original owner
* Not be claimed as a dependent on another person’s tax return
* Not have claimed another used clean vehicle credit in the 3 years before the purchase date
In addition, your modified adjusted gross income (AGI) may not exceed:
* $150,000 for married filing jointly or a surviving spouse
* $112,500 for heads of households
$75,000 for all other filers
You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your income is below the threshold for 1 of the two years, you can claim the credit.
To qualify, a vehicle must meet all of these requirements:
* 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 2023 would need a model year of 2021 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 least 7 kilowatt hours
* Be for use primarily in the United States
Find a list of qualified vehicles.
The sale qualifies only if:
* You buy the vehicle from a dealer
* For qualified used EVs, the dealer reports required information to you at the time of sale and to the IRS.
A dealer is a person licensed to sell motor vehicles in a state, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, an Indian tribal government, or any Alaska Native Corporation.
Required information includes:
* Dealer's name and taxpayer ID number
* Buyer's name and taxpayer ID number
* Sale date and sale price
* Maximum credit allowable under IRC 25E
* Vehicle identification number (VIN), unless the vehicle is not assigned one
* Battery capacity
Complete Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit Including Qualified Two-Wheeled Plug-in Electric Vehicles and New and Used Clean Vehicles, and file it with your tax return for the year you took possession of the vehicle to claim the used clean vehicle credit. You will need to include the vehicle identification number (VIN) on the form.
