Used electric vehicles (EVs) are eligible for tax credits, but they differ from those for new EVs. Here are the key points regarding eligibility and benefits for both new and used EVs:
New Electric Vehicles
- Tax Credit Amount: Up to $7,500 for new EVs.
- Eligibility: Eligibility includes specific vehicle requirements such as assembly and sourcing restrictions, which have been updated to limit the number of qualifying vehicles.
- Income Limits: There are income limits for new EV buyers, but they are not as restrictive as those for used EVs.
- Other Requirements: Buyers must purchase the new EV from authorized dealers.
Used Electric Vehicles
- Tax Credit Amount: Up to $4,000, which is 30% of the sale price.
- Eligibility Criteria:
- Price Limit: Sale price must be $25,000 or less.
- Model Year: The vehicle model must be at least two years older than the calendar year of purchase.
- Battery Capacity: Typically requires a battery capacity of at least 7 kilowatt-hours for most EVs.
- Purchase Location: Must be bought from a licensed dealer who has registered with the IRS.
- Buyer Eligibility:
- Buyer must not be the original owner.
- Buyer must not claim the credit within three years of a previous used EV credit.
- Buyer’s modified adjusted gross income (MAGI) must not exceed: $150,000 for joint filers, $112,500 for heads of households, or $75,000 for other filers.
In summary, used EVs are eligible for a tax credit, but the rules and benefits differ from those for new EVs, including a lower maximum credit amount and more stringent eligibility criteria for vehicles and buyers.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-used-evs-eligible-for-the-same-tax-credits-as-new-ones/
