If I buy a qualifying used E-car under $25K before January 2023 can a person still get the 30% or $4000 tax credit? Or, does a person have to wait till 2023 to purchase?

[DoninGA]

The used EV tax credit for up to $4,000 is only for vehicles put into service after 12/31/2023.

See https://www.consumerreports.org/cars/hybrids-evs/electric-vehicles-that-qualify-for-new-ev-tax-credi...

[mglenesk]

Oh, Wow. So a person has to basically wait till January 1st, 2024 to get the used E-car tax credit. That seems like a long ways off.

[ShirlynW · Accepted solution]

No. According to the IRS, purchases made before 2023 don’t qualify. A person must wait until 2023 to purchase a qualifying used vehicle. Beginning January 1, 2023, if you buy a qualified used electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a used clean vehicle tax credit (also referred to as a previously owned clean vehicle credit). The credit equals 30% percent of the sale price up to a maximum credit of $4,000.

Also, 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.

For more information : Used Clean Vehicle Credit

[mglenesk]

Wow - It seems crazy that I can't get the tax break unless I owe a bunch in taxes.

Which if I owed that much it would be a fine for underpayment.

So, to get the tax credit on a used car I have to underpay my taxes by $4000 ± to qualify for a tax break?

Sounds not right,

Mark