Tax credit for EV

[trberkovich]

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

[rschule1]

Hi Tom

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

EV Qualifying Vehicles

[conniem123]

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

[trberkovich]

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? 

[trberkovich]

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 ..., 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]

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.

[trberkovich]

Connie,  Thanks for your reply to my follow up question.  My vehicle was placed in service after Dec 31, 2022, and before April 18.  2023.   It is not listed in the link for qualified vehicles, Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After ...,  Does that mean that I definitely cannot claim any credits for my hybrid vehicle?

[conniem123]

I would not say definitely, I would continue to check the website as information is added daily.

Connie