Tax Credit for Used EV

We talked about buying a new EV, but what about used EV?  As of January 1, 2023, you could be eligible for a used clean vehicle tax credit.  To qualify, an individual must:

• Be an individual who bought the vehicle for use and not for resale
• Not be the original owner
• Not be claimed as a dependent on another person’s tax return
• Not have claimed another used clean vehicle credit in the 3 years before the purchase date

And the vehicle must:

• Be purchased from a licensed dealer
• Have a sale price of $25,000 or less
• Have a model year at least 2 years earlier than the calendar year when you buy it. For example, a vehicle purchased in 2023 would need a model year of 2021 or older.
• Not have already been transferred after August 16, 2022, to a qualified buyer.
• Have a gross vehicle weight rating of less than 14,000 pounds
• Be an eligible FCV or plug-in EV with a battery capacity of least 7 kilowatt hours
• Be for use primarily in the United States

This nonrefundable credit equals 30% of the sale price, with a maximum credit of $4,000, and applies only to purchases made in 2023 or later. Additionally, your modified AGI must fall within specific thresholds. Take advantage if you are in the market for a used EV.

Check here for more info.