EV car

[Dani31]

I purchased an EV car in 2024.  Do I get a tax credit for it?  

[Vanessa A]

Possibly.  Was it new or used? Below is the criteria for being eligible to claim the new or used EV credit.

Things to remember about this credit:

• It is worth UP to $7,500 depending on the vehicle you purchase
• It is a nonrefundable credit.  This means it will reduce your tax liability by up to $7,500 but will not result in a negative number or a tax refund of money you did not pay in or have withheld.
• The credit cannot be carried forward
• You can use your income for the year you take delivery or the prior year if your income in the previous year was below the threshold if it is above the threshold in the current year. 
• In order to qualify your AGI must be less than:
  • $300,000 if Married Filing Joint
  • $225,000 if Head of Household
  • $150,000 if single or Married Filing Separate
• Vehicle Qualifications are as follows:
  • Vans, SUVS, and Pickup Trucks my have an MSRP of no more than $80,000
  • Other vehicles must have an MSRP of no more than $55,000
    • The MSRP does not include destination charges, options added by the deal (seal coating, extended warranty, etc.) taxes, fees, or manufacturer discounts or incentives. Basically, it does not matter if you strike a good deal on the vehicle if the Manufacturer says it is worth more than the limit, it does not qualify.
  • Final Assembly must be in North America
  • The amount of the credit may be affected by date placed in service
    • January 1, 2023-April 17, 2023 credit of $2,500-$7,500
    • April 18, 2023 credit amount is $3,750 to $7,500
  • Click here to enter your VIN to see if your vehicle qualifies

The Used EV Credit is worth 30% of the purchase price up to $4,000.  In order to qualify, you must meet the following criteria:

• You must NOT be the original owner
• You must NOT be claimed as a dependent on another persons tax return
• You must NOT have claimed a used vehicle credit in the past 3 years
• You must be the person who bought the vehicle for use and not for resale
• Your AGI cannot be greater than:
  • $150,000 for Married Filing Jointly
  • $112,500 for Head of Household
  • $75,000 for all other filers
    • You can use your AGI from the year you buy the vehicle or the year before if your income would qualify in one year but not the other. 

For the vehicle to qualify the following has to be met:

• At least 2 years older than the current model year (for 2023 Tax Season this means a 2022 model or older) 
• Must have a sales prices of no more than $25,000
• Be used primarily in the US
• Have a GVWR of less than 14,000lbs
• Cannot have been used for a used vehicle credit previously
• Bought from a dealer (cannot be a private sale)
• The dealer must report certain information to you at the time of the sale

This Credit is Non-Refundable and cannot be carried forward. 

Click here to see if your make and model qualify.

To report the purchase of your EV and see if you qualify for a EV Credit, you will select the following:

1. Federal
2. Deductions and Credits
3. Show More next to Cars and Other Things you Own
4. Start next to Energy Efficient Vehicles

*Please note your navigation sequence may be different*

EV Credit-New

EV Credit-Used

[Vanessa A]

Possibly.  Was it new or used? Below is the criteria for being eligible to claim the new or used EV credit.

Things to remember about this credit:

• It is worth UP to $7,500 depending on the vehicle you purchase
• It is a nonrefundable credit.  This means it will reduce your tax liability by up to $7,500 but will not result in a negative number or a tax refund of money you did not pay in or have withheld.
• The credit cannot be carried forward
• You can use your income for the year you take delivery or the prior year if your income in the previous year was below the threshold if it is above the threshold in the current year. 
• In order to qualify your AGI must be less than:
  • $300,000 if Married Filing Joint
  • $225,000 if Head of Household
  • $150,000 if single or Married Filing Separate
• Vehicle Qualifications are as follows:
  • Vans, SUVS, and Pickup Trucks my have an MSRP of no more than $80,000
  • Other vehicles must have an MSRP of no more than $55,000
    • The MSRP does not include destination charges, options added by the deal (seal coating, extended warranty, etc.) taxes, fees, or manufacturer discounts or incentives. Basically, it does not matter if you strike a good deal on the vehicle if the Manufacturer says it is worth more than the limit, it does not qualify.
  • Final Assembly must be in North America
  • The amount of the credit may be affected by date placed in service
    • January 1, 2023-April 17, 2023 credit of $2,500-$7,500
    • April 18, 2023 credit amount is $3,750 to $7,500
  • Click here to enter your VIN to see if your vehicle qualifies

The Used EV Credit is worth 30% of the purchase price up to $4,000.  In order to qualify, you must meet the following criteria:

• You must NOT be the original owner
• You must NOT be claimed as a dependent on another persons tax return
• You must NOT have claimed a used vehicle credit in the past 3 years
• You must be the person who bought the vehicle for use and not for resale
• Your AGI cannot be greater than:
  • $150,000 for Married Filing Jointly
  • $112,500 for Head of Household
  • $75,000 for all other filers
    • You can use your AGI from the year you buy the vehicle or the year before if your income would qualify in one year but not the other. 

For the vehicle to qualify the following has to be met:

• At least 2 years older than the current model year (for 2023 Tax Season this means a 2022 model or older) 
• Must have a sales prices of no more than $25,000
• Be used primarily in the US
• Have a GVWR of less than 14,000lbs
• Cannot have been used for a used vehicle credit previously
• Bought from a dealer (cannot be a private sale)
• The dealer must report certain information to you at the time of the sale

This Credit is Non-Refundable and cannot be carried forward. 

Click here to see if your make and model qualify.

To report the purchase of your EV and see if you qualify for a EV Credit, you will select the following:

1. Federal
2. Deductions and Credits
3. Show More next to Cars and Other Things you Own
4. Start next to Energy Efficient Vehicles

*Please note your navigation sequence may be different*

EV Credit-New

EV Credit-Used