Electric Vehicle Tax Credits

Are you thinking about buying a vehicle in the future? Buying a new or used electric vehicle, plug in, or hybrid vehicle in 2023 can qualify you for up to $7,500 through the new Qualified Plug-In Electric Drive Motor Vehicle Credit.

For your purchase of an electric vehicle to qualify, the vehicle must meet the following requirements:

• Minimum of 7kWh of total battery life

• Gross weight rating of 14,000lbs or less

• The vehicle is made by a qualified manufacturer or is a fuel cell vehicle

• MSRP of below $80,000 for trucks and $55,000 for all other vehicles

• The vehicle must meet critical mineral and battery component requirements (This information would be provided to you when purchasing the vehicle from a dealership)

• The vehicle is primarily for use within the United States

• Final assembly occurs in North America

To be eligible for the credit, it's important to note that you should not exceed the adjusted gross income threshold. For the year 2022, there were no income limitations for claiming the credit. However, beginning in 2023, income limitations come into effect. To qualify for the credit in 2023, your adjusted gross income must be below $300,000 for joint filers, $225,000 for head of household filers, and $150,000 for single filers.

For used vehicles, there are additional requirements to claim the credit. The maximum available credit for used vehicles is $4,000. The additional requirements are as follows:

• Sale price of $25,000 or less

• AGI limitations: $150,000 Joint, $112,500 HOH, $75,000 Single

• You are not a dependent

• You have not claimed an EV Credit or Clean Vehicle Credit 3 years prior to the current year

• You are not the original owner

• Model is from at least 2 years prior to the current year

• The vehicle has not been purchased by someone else who has the ability to claim the credit

The IRS has provided a calculator, as well as a list of currently qualifying vehicles for 2023. There is also a FAQ section for additional information. These resources can be found here: https://fueleconomy.gov/feg/tax2023.shtml.