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What's a clean vehicle tax credit?

by TurboTax1453 Updated a day ago

If you own an all-electric or hybrid plug-in motor vehicle, you might qualify for a clean vehicle credit. The credit ranges from $2,500 to $7,500.

The size of your car’s battery determines how much money you may receive. Typically, the bigger the battery, the bigger the credit. For some models, the credit amount can fall well below $7,500.

Note: The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.

To find the clean vehicles section in TurboTax:

  1. Open or continue your return in TurboTax by selecting the Continue or Start button on the Tax Home screen.
  2. Select Search, and enter Form 8936 in the search bar.
  3. Select Jump to Form 8936 from the results.

We’ll ask you questions about your car to see if you qualify. For qualification details, see clean vehicle tax credits on the IRS website.

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