Yes, you can claim the EV tax credit if you purchase a used EV, provided both you and the vehicle meet certain qualifications. Here are the key points to consider:
Eligibility Criteria for Used EV Tax Credit
- Vehicle Specifications:
- The vehicle must be a plug-in electric vehicle (EV) or a fuel cell vehicle (FCV).
- It must have at least 7 kilowatt-hours of battery capacity.
- The vehicle must weigh less than 14,000 pounds.
- The purchase price must be $25,000 or less.
- The vehicle must be at least two years old and this is the first transfer of ownership after the initial purchase.
- Purchaser Qualifications:
- You must be an individual buying the vehicle for personal use, not for resale.
- You cannot be the original owner of the vehicle.
- You cannot be claimed as a dependent on someone else’s tax return.
- You must not have claimed another used EV tax credit in the three years preceding the purchase.
- Income Requirements:
- Your modified adjusted gross income (AGI) must be below $150,000 for married filing jointly, $112,500 for heads of households, and $75,000 for all other filers. You can use the lower AGI from either the year of purchase or the previous year.
Claiming the Credit
- The used EV tax credit is 30% of the vehicle’s purchase price, up to a maximum of $4,000.
- The credit is non-refundable, meaning you cannot get back more than you owe in taxes, and excess credits cannot be carried over to future years.
- To claim the credit, you must file Form 8936 with your tax return.
Important Notes
- Purchases made before January 1, 2023, do not qualify for this credit.
- The seller must provide necessary documentation at the time of sale and register with the IRS for the vehicle to be eligible.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-claim-the-ev-tax-credit-if-i-purchase-a-used-ev/
