To ensure a vehicle qualifies for the tax credit, sellers should provide the following information:
- Manufacturing Information: The vehicle must be assembled in North America, including the U.S., Canada, or Mexico. It is crucial to confirm the assembly location to comply with this requirement.
- Battery Requirements: For the battery portion of the credit (up to $3,750), a certain percentage of the vehicle’s battery must be assembled or manufactured within North America. The thresholds vary by year:
- 2023: 50%
- 2024: 60%
- 2025: 60%
- 2026: 70%
- 2027: 80%
- 2028: 90%
- 2029 through 2032: 100%
- Critical Minerals Requirement: The remaining $3,750 portion of the credit requires that a certain percentage of critical minerals in the car’s battery must be extracted or processed within the U.S. or in a country with which the U.S. has a free-trade agreement. The thresholds are:
- 2023: 40%
- 2024: 50%
- 2025: 60%
- 2026 through 2032: 80%
- MSRP Details: The vehicle’s MSRP (Manufacturer’s Suggested Retail Price) must be below certain limits:
- SUVs, pickup trucks, and vans: $80,000
- Sedans, hatchbacks, wagons: $55,000
- Vehicle Classification: Sellers should ensure that the vehicle is classified correctly according to EPA guidelines (e.g., SUV, sedan) to determine the applicable MSRP limit.
- Buyer’s Income Information: While not necessary for the seller to provide, it is important for buyers to know that their modified adjusted gross income (MAGI) must be $300,000 or less for joint filers and $225,000 or less for single filers to qualify for the credit.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-information-must-a-seller-provide-to-ensure-a-vehicle-qualifies-for-the-tax-credit/
