First and foremost, this update to the credit begins Tax Year 2023.
This expansion of the EV credit can only be used NEXT YEAR when you file your 2023 tax year return.
“If you buy a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after, you may qualify for a clean vehicle tax credit.”
“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.”
(Note- there are still available credits for tax year 2022, just not for a Tesla because Tesla hit their allowed quota in 2019)
NEXT YEAR when you file for Tax Year 2023 and you apply for a EV credit for a vehicle purchased in 2023, ( and starting in 2023 Tesla is now again eligible since the limit on eligible manufacturers is eliminated for 2023) you may have the option of using your modified AGI for Tax Year 2023 OR Tax Year 2022.
"You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit."
This link is ONLY for vehicles purchased in 2023 to 2032.
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