topic EV tax credit eligibility? Can I use AGI of 2022 taxes if I purchase a vehicle in 2023? in Deductions & credits

EV tax credit eligibility? Can I use AGI of 2022 taxes if I purchase a vehicle in 2023?

pruthvipapasani — Tue, 24 Feb 2026 06:58:06 GMT

I am joint filing and my AGI for 2022 is less than 300k and to the best estimate my 2023 AGI will cross 300k. If I purchase Tesla Model Y in 2023, will I be eligible for a tax credit based on AGI from 2022?

Re: EV tax credit eligibility? Can I use AGI of 2022 taxes if I purchase a vehicle in 2023?

DoninGA — Thu, 13 Jul 2023 17:09:35 GMT

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.

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.

Go to this IRS website for information - https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

Re: EV tax credit eligibility? Can I use AGI of 2022 taxes if I purchase a vehicle in 2023?

NCperson — Thu, 13 Jul 2023 21:20:08 GMT

@pruthvipapasani

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.

what this means is that prior to applying the credit, the maximum credit is $7500 or whatever is on Line 22, whichever is less.