Used EV Tax Credit

Who doesn’t enjoy a good skim of the IRS website, especially when it involves reducing your taxes?  Starting on January 1, 2023, if you buy a qualified used EV or FCV for $25,000 or less from a licensed dealer, you may be eligible for a used clean vehicle tax credit. The credit is equal to 30% of the sale price, up to a maximum of $4,000, and is non-refundable. To be eligible, you must be an individual who bought the vehicle for personal use and not resale, not be the original owner, not be claimed as a dependent on someone else's tax return, and not have claimed another used clean vehicle credit in the 3 years prior to the purchase. Your modified adjusted gross income must also be below certain thresholds based on your filing status. In addition, the vehicle must have a model year at least 2 years prior to the year of purchase, have a gross vehicle weight rating of less than 14,000 pounds, have a battery capacity of at least 7-kilowatt hours, and be primarily used in the United States. To claim the credit, you must complete Form 8936 and include the VIN.

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