Yes, there are additional incentives specifically for purchasing used electric vehicles (EVs) under the federal tax credit system.
Used Clean Vehicle Tax Credit
- If you buy a qualified used electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a Used Clean Vehicle Tax Credit of up to $4,000, which is 30% of the sale price capped at that amount.
- To qualify for this credit, the vehicle must:
- Be sold by a dealer registered with the IRS.
- Have a sale price of $25,000 or less.
- Have a model year at least two years older than the current calendar year (e.g., for 2024 purchases, the model must be 2022 or earlier).
- Be listed on the official qualifying vehicle list provided by the government.
- To qualify as a purchaser:
- You must be an individual buying for personal use, not for resale.
- You cannot be the original owner of the vehicle.
- You cannot have claimed another used clean vehicle credit in the previous 3 years.
- Your modified adjusted gross income (AGI) must be below certain thresholds: $150,000 for married filing jointly, $112,500 for heads of households, and $75,000 for other filers.
- Note that the credit is nonrefundable, meaning it can reduce your tax liability but you won’t receive a refund if the credit exceeds your taxes owed. Also, it cannot be carried forward to future tax years.
Additional Points
- The dealership is required to provide information about the vehicle’s eligibility and register the sale with the IRS for the buyer to claim the credit.
- This tax credit is separate from and additional to any incentives for new EV purchases and is specifically designed to encourage the adoption of used EVs.
In summary, purchasing a used EV can qualify you for up to a $4,000 federal tax credit if you meet income and vehicle eligibility requirements and buy from a registered dealer. This credit is an important financial incentive aimed at making used electric vehicles more affordable.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-additional-incentives-for-purchasing-used-evs/
