New vs. Used EV Tax Credit Requirements
Eligibility Criteria
- New EVs:
- Income limits: $300,000 (joint filers), $225,000 (head of household), or $150,000 (other filers).
- Battery & sourcing: Must meet annual thresholds (e.g., 60% battery assembly in 2024, 50% critical minerals sourcing in 2024) to qualify for up to $7,500.
- Purpose: Must be purchased for personal use, not resale.
- Used EVs:
- Income limits: Lower thresholds at $150,000 (joint filers), $112,500 (head of household), or $75,000 (other filers).
- Price limit: Vehicle must cost $25,000 or less.
- Purchase frequency: Credit allowed once every 3 years.
Credit Amount
- New EVs: Up to $7,500, split between battery ($3,750) and critical minerals ($3,750) requirements.
- Used EVs: Up to $4,000 (30% of sale price, capped at $4,000).
Additional Rules
- New EVs: Requires seller registration and reporting to the IRS at the time of sale.
- Used EVs: Must be purchased from a licensed dealer and be at least 2 model years old.
- Tax implications: Both credits are non-refundable, but new EVs allow income flexibility (current or prior year AGI).
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-tax-credit-requirements-differ-between-new-and-used-evs/
