Eligibility Requirements for Purchase Tax Credits on Clean Vehicles
New Clean Vehicles
- Purchase for Personal Use: The vehicle must be purchased for your own use, not for resale.
- Modified Adjusted Gross Income (MAGI):
- The credit eligibility depends on the buyer’s income: $150,000 or less for joint filers, $112,500 or less for head of household, or $75,000 or less for other filers.
- Vehicle Requirements:
- The vehicle must be an all-electric, plug-in hybrid, or fuel cell vehicle.
- It must have a battery capacity of at least 7 kilowatt hours (except for fuel cell vehicles).
- It must have a gross vehicle weight rating of less than 14,000 pounds.
- Final assembly must occur in North America.
- Reporting Requirements:
- The seller must report required information to you and the IRS at the time of sale.
Used Clean Vehicles
- Purchase from a Dealer: The vehicle must be bought from a licensed dealer.
- Vehicle Requirements:
- It must be an electric vehicle, plug-in hybrid electric vehicle, or fuel cell vehicle.
- The model year must be at least two years earlier than the calendar year of purchase.
- The sale price must be $25,000 or less.
- It must have a gross vehicle weight rating of less than 14,000 pounds.
- It must have a battery capacity of at least 7 kilowatt hours for plug-in EVs.
- Previous Transfer Status: The vehicle must not have been transferred to a qualified buyer after August 16, 2022.
- Income and Eligibility:
- The buyer’s MAGI must meet the income limits ($150,000 or less for joint filers, $112,500 or less for head of household, or $75,000 or less for other filers).
- The buyer cannot be a dependent on another taxpayer’s return.
- The credit cannot have been claimed by the buyer in the past three years.
- Dealer Reporting:
- The dealer must report required information to you and the IRS at the time of sale.
Available Credits
- New Vehicles: Up to $7,500.
- Used Vehicles: Up to $4,000.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-eligibility-requirements-for-the-purchase-tax-credit/
