To determine if your electric vehicle (EV) qualifies for tax credits, follow these key steps:
1. Check Eligibility Requirements
- Purchase type: Credits apply to new plug-in EVs or fuel cell vehicles (up to $7,500) or used EVs under $25,000 (up to $4,000).
- Ownership and use:
- The vehicle must be purchased for personal use (not resale).
- It must be used primarily in the U.S..
- Income limits (modified AGI):
- $300,000 for joint filers or surviving spouses.
- $225,000 for heads of household.
- $150,000 for all other filers.
2. Verify Vehicle Qualifications
- New vehicles:
- Battery components: A percentage must be manufactured/assembled in North America (e.g., 60% in 2024).
- Critical minerals: A percentage must be sourced from the U.S. or free-trade partners (e.g., 50% in 2024).
- Seller reporting: The dealer must provide eligibility details and register the sale with the IRS.
- Used vehicles:
- Price limit: Maximum $25,000.
- Age: At least two model years old.
3. Consult Official Resources
- IRS Publication 5866: Lists requirements for new clean vehicles.
- IRS Publication 5905: Explains dealer reporting obligations.
- Energy Department’s website: Provides updates on eligible models.
- IRS or dealer-provided info: Confirm tax credit eligibility at purchase.
4. Claim the Credit
- New EVs: Claim via Form 8936 when filing taxes or as a point-of-sale discount.
- Used EVs: Requires purchase from a licensed dealer and submission of Form 8936.
Check the IRS website or Energy.gov for the latest eligible models and requirements.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-i-determine-if-my-electric-vehicle-qualifies-for-tax-credits/
