Yes, there are federal tax credits available for used electric vehicles. Here are the details:
Eligibility and Credits for Used Electric Vehicles
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Credit Amount:
- The federal used electric vehicle tax credit is up to $4,000. It equals 30% of the sale price, with a maximum credit of $4,000.
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Vehicle Requirements:
- The vehicle must be a qualified used electric vehicle (EV) or fuel cell vehicle (FCV) purchased for use, not for resale.
- The vehicle must have been purchased from a licensed dealer.
- The sale price must be $25,000 or less.
- The vehicle model year must be at least two years prior to the current calendar year.
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Purchaser Requirements:
- The buyer must not be the original owner of the vehicle.
- The buyer cannot have claimed another used clean vehicle credit in the three years before the purchase date.
- The buyer must have a modified adjusted gross income (AGI) not exceeding $150,000 for married filing jointly or a surviving spouse, $112,500 for heads of households, or $75,000 for all other filers.
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Effective Date and Purchases:
- Purchases must be made on or after January 1, 2023, to qualify for the credit.
- Purchases made before 2023 do not qualify for this specific credit.
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Nonrefundable Credit:
- The credit is nonrefundable, meaning it cannot exceed the amount of tax owed.
- Any unused credit cannot be carried forward to future tax years.
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Documentation:
- The seller must provide information about the vehicle’s qualifications for the credit.
- The buyer must file Form 8936 with the IRS to claim the credit.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-federal-tax-credits-for-used-electric-vehicles/
