EV Credit

[zulaatax]

I traded in my car for $20,000 and bought a used 2023 EV for $40,000 in Aug 2025. Can my car qualify for an EV tax credit?  Is there an income limit for this credit?

[Karis_F]

Yes. The purchase of a used electric vehicle is eligible for the New Clean Vehicle Credit if purchased by September 30, 2025. The credit is equal to the lesser of $4,000 or 30% of the sales price, but there are AGI limitations and other requirements that apply.

See this TurboTax article for details:

Understanding the New Clean Vehicle Credit