Tax credit for EV

Forum|Forum|2 years ago
June 28, 2023
2 replies
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I purchased a Lexus NX 350h hybrid in 2023. I understand that it was assembled in Canada. Does it quality for an EV credit in 2023? If yes, can you tell me the amount of credit?

Tom B

Ask the Experts - Energy - June 2023

rschule1

Level 6

Hi Tom

Here is link from the EPA, which hopefully will guide if the vehicle qualifies.

EV Qualifying Vehicles

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trberkovichAuthor

Level 3

Thanks for your answer. As a follow-up, the make and model of my car are not listied in the link that you provided. Does that mean that I definitely cannot get a tax credit for my hybrid vehicle?

conniem123

Level 7

Congratulations on the purchase of your new vehicle!

To qualify, you must:

Buy it for your own use, not for resale
Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

$300,000 for married couples filing jointly
$225,000 for heads of households
$150,000 for all other filers

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.

The $7,500 credit is broken into two new credits

$3,750 for meeting critical minerals requirement*
$3,750 for qualifying vehicle meeting battery component requirement*

There are several eligibility requirements, which includes final assembly in North America.

To qualify, a vehicle must:

Have a battery capacity of at least 7 kilowatt hours
Have a gross vehicle weight rating of less than 14,000 pounds
Be made by a qualified manufacturer.
- FCVs do not need to be made by a qualified manufacturer to be eligible. See Rev. Proc. 2022-42 for more detailed guidance.
Undergo final assembly in North America
Meet critical mineral and battery component requirements (as of April 18, 2023).

The credit will be reported on Form 8936, which will be part of your tax return. The credit will be reflected on your tax return, Form 1040, line 20.

I hope this information is helpful!

Connie

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trberkovichAuthor

Level 3

Connie, Thanks for your answer. In the link that you sent for qualifying vehicles, Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After (fueleconomy.gov), the make and model of my vehicle is not listed (from the drop down lists). Does that mean that I definitely cannot get any tax credit for my vehicle?

conniem123

Level 7

Some qualified manufacturers have yet to submit information on eligible vehicles that meet the requirements for vehicles placed in service on or after April 18, 2023. Please check back for updated information.

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