The eligibility requirements for the used electric vehicle (EV) tax credit under the federal program are as follows:
Vehicle Eligibility Requirements
- The vehicle must be a qualified used plug-in electric vehicle (EV) or fuel cell vehicle (FCV), including cars and light trucks.
- The sale price must be $25,000 or less, inclusive of all dealer-imposed costs or fees not required by law.
- The vehicle must be at least two years old at the time of sale.
- The vehicle must weigh less than 14,000 pounds.
- The credit applies only to the first transfer of the vehicle from the original owner to a used vehicle buyer.
- The vehicle must have a battery capacity of at least 7 kilowatt hours.
Buyer Eligibility Requirements
- You must be an individual buyer, not a business.
- You cannot be the original owner of the vehicle.
- You must purchase the vehicle for use and not for resale.
- You cannot be claimed as a dependent on another person’s tax return.
- You cannot have claimed the used clean vehicle credit within the last 3 years before your purchase.
- Your modified adjusted gross income (AGI) must be below the following thresholds:
- $150,000 for married filing jointly or surviving spouse
- $112,500 for heads of household
- $75,000 for all other filers
- The income can be based on either the year of vehicle delivery or the previous year—whichever is lower.
Additional Notes
- The credit is worth 30% of the sale price, up to a maximum of $4,000.
- The credit is nonrefundable, meaning you cannot receive a refund if the credit exceeds your tax liability.
- Sellers must register online with the IRS and report the vehicle information to ensure eligibility.
- Only purchases made beginning January 1, 2023, qualify.
In summary, to qualify for the used EV tax credit, the vehicle must be a qualified used plug-in electric vehicle priced at $25,000 or less, and the buyer must meet income limits and use restrictions, with no prior claim of the credit in the last three years. The maximum credit is $4,000 or 30% of the purchase price.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-eligibility-requirements-for-used-electric-vehicle-tax-credits/
