Yes, it must be reported on your tax return. If the dealer gave you the electric vehicle (EV) credit when you purchased the car, and if your income is above the thresholds you may have to repay part of the credit. If your income is below the limits below there will be no recapture of your credit.
Who qualifies
You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.
The credit is available to individuals and their businesses.
To qualify, you must:
· Buy it for your own use, not for resale
· Use it primarily in the U.S.
In addition, your modified adjusted gross income (AGI) may not exceed:
· $300,000 for married couples filing jointly or a surviving spouse
· $225,000 for heads of households
· $150,000 for all other filers
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