EV Tax Credit

[Bethey]

I am planning to buy an EV in 2023. How much is the tax credit, and what  are the steps I should take to get the maximum amount?

[KochuK]

Hi Bethey, thanks for the event questions.

Please look at page 2 of below link, under the column of "Post-IRA 2022" under the label of "Clean Vehicles Credit": the highlights are -

*Max amount could be $7,500 non-refundable credit;

*Final assembly in North America;

*Vehicle price limits;

*Taxpayer income limits;

* If you do not have a large income tax liability so the EV credit can be useful in 2023, you might want to wait until 2024 when the dealer can reduce sale price by applicable credit.

Clean Vehicle Tax Credits in the Inflation Reduction Act of 2022

https://crsreports.congress.gov/product/pdf/IN/IN11996

Please see below for Index for Manufacturers published by the IRS (in 2023 and onwards, GM and Tesla models are eligible again since the new rules remove the 200,000 sold vehicle cap.) 

https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit

Hope this helps.