EV tax credit

[geordieontheweb]

In June 2024 I purchased a used 2023 Chevy Bolt EV.

CARMAX did not give me any paperwork regarding the tax credit.

They told me yesterday that I am not eligible for any credit because the car wasn't 2 years old.

Is there no tax credit for a 1 year old used car?

[Vanessa A · Accepted solution]

No, there is not a credit for a 1 year old used EV car. The new credit is for original purchase and the used credit is for 2 years old or older. 

EV Credit-New

EV Credit-Used

[geordieontheweb]

Thanks for letting me know.

I feel stupid because CARMAX had used 2022 models at much better pricing.

I usually do more research when I buy a car. Definitely a costly lesson learned.

[BrittanyS]

That is an unfortunate lesson.  For future reference, follow this information provided by the IRS, "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. The credit equals 30% of the sale price up to a maximum credit of $4,000.

If you do not transfer the credit, it is nonrefundable when you file your taxes, 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.

At the time of sale, a seller must give you information about your vehicle's qualifications. Sellers must also register online and report the same information to the IRS. If they don't, your vehicle won't be eligible for the credit.

Purchases made before 2023 don't qualify." 

EV Credit-Used

@geordieontheweb