To be eligible for the federal tax credit of up to $7,500 for new electric vehicles (EVs), several criteria must be met:
Eligibility Criteria:
- Vehicle Type: The vehicle must be a new, qualified plug-in electric vehicle (EV) or fuel cell vehicle (FCV) purchased for personal use, not for resale.
- Assembly Requirement: The vehicle must be assembled in North America (including the United States, Canada, or Mexico).
- MSRP Limits:
- For SUVs, pickup trucks, and vans, the Manufacturer’s Suggested Retail Price (MSRP) must not exceed $80,000.
- For sedans, hatchbacks, wagons, and other vehicles, the MSRP must not exceed $55,000.
- Use Location: The vehicle must be used primarily in the United States.
- Income Limits: The purchaser’s modified adjusted gross income (AGI) must not exceed:
- $300,000 for married couples filing jointly or a surviving spouse,
- $225,000 for heads of households,
- $150,000 for all other filers. You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is lower.
- Battery and Sourcing Requirements:
- Battery Requirement: A certain percentage of the vehicle’s battery must be assembled or manufactured within North America:
- 2023: 50%
- 2024 and 2025: 60%
- 2026: 70%
- 2027: 80%
- 2028: 90%
- 2029 through 2032: 100%
- Critical Minerals Requirement: A certain percentage of critical minerals in the car’s battery must be extracted or processed in the U.S. or a country with a free-trade agreement:
- 2023: 40%
- 2024: 50%
- 2025: 60%
- 2026 through 2032: 80%
If a vehicle meets both requirements, it is eligible for the full $7,500 credit. If it meets only one requirement, it may be eligible for a partial credit of up to $3,750.
- Battery Requirement: A certain percentage of the vehicle’s battery must be assembled or manufactured within North America:
These criteria are established by the Inflation Reduction Act of 2022, affecting vehicles purchased from 2023 to 2032.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-eligibility-criteria-for-the-7500-federal-tax-credit-for-electric-vehicles/
