Is a 2023 electric Chevy Bolt eligible for the $7500 fed tax credit even if it's being sold as "used?" It doesn't seem to fit the new or used criteria.

Forum|Forum|2 years ago
December 8, 2023
2 replies
11 views

Used vehicles eligible for the $4000 credit need to be from 2021 or prior, so I don't know how a 2023 used vehicle fits in.

TurboTax Online

DoninGA

Level 15

If you will not be the original owner of the vehicle then it is a used vehicle and only eligible for the used EV credit.

Opus 17

Level 15

I suspect the 2 year rule is a requirement to prevent someone from buying a new EV, claiming the new credit, and then immediately flipping it to someone else who will claim the used credit. The rule creates a disincentive to flip new EVs, since they won't qualify for the credit, the prices that a dealer will be able to charge won't be as good, and if dealers can't sell used EVs that are less than 2 years old, they won't want to buy them either.

See here for more

https://www.irs.gov/credits-deductions/used-clean-vehicle-credit