Used Clean Vehicle Tax Credit: Handle with Care
You’re probably familiar with the $7,500 federal tax credit for purchases of certain new electric, plug-in hybrid and fuel-cell vehicles. But did you know that there’s a tax credit available for used clean vehicles? It’s equal to 30% of the sale price, up to a maximum credit of $4,000. However, strict rules about which vehicles are eligible may make it difficult for many people to qualify for the credit.
To qualify, a vehicle must have a sale price of $25,000 or less, a model year at least two years earlier than the year you buy it, not already have been resold after August 16, 2022, and be purchased from a dealer, along with certain other technical requirements. Also, to be eligible for the credit, you must not have claimed another used clean vehicle credit in the preceding three years, and your modified adjusted gross income must not exceed $75,000 for single filers ($150,000 for joint filers). Note that these income limits are half the size of those for the new clean vehicle credit.
This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.
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