Key Takeaways<\/h3>\n\n\n- Clean Vehicle Credit offers tax breaks for eligible EVs, based on qualification criteria like assembly location and purchase year. <\/li>\n
- Applying for the credit involves submitting Form 8936 with tax returns or coordinating credit transfer through the dealership. Eligibility varies for different EV types and purchase years. <\/li>\n<\/ul>\n<\/div><\/div>\n
<\/section>\n
\n <\/p>\n
The future is looking electric, and vehicles are at the forefront of the revolution. Indeed, 2024 is the year for a whole fleet of new EV models<\/a>. And while we love electric cars for their smooth rides, fast acceleration, and energy efficiency, the real winner is the environment. EVs have the potential to reduce global carbon emissions, and to aid in the transition, the US government offers incentives with substantial tax breaks. Called the Clean Vehicle Credit<\/a>, it’s as high as $7,500.<\/p>\n<\/p>\n
You may also be able to apply the credit to the final cost of your vehicle through the dealership. It’s like a discount subsidized by the government, and it circumnavigates the tax return snafu. But not every EV is eligible.<\/em><\/p>\n
\n<\/p>\n
<\/p>\n
Determining if your EV qualifies is tricky. For one, there are several types of EVs: all-electric, plug-in hybrids, and fuel-cell models. Each type has its own qualifications and credit amounts. To complicate matters further, your eligibility depends on the year the vehicle was purchased, among other prerequisites.<\/p>\n
<\/p>\n
The eligible EVs are broken down into three types:<\/h3>\n\n- New EVs purchased in 2023 or after <\/li>\n
- New EVs purchased before 2023 <\/li>\n
- Pre-owned EVs purchased in 2023 or after <\/li>\n<\/ul>\n
<\/p>\n
To help folks navigate the bureaucratic jargon, I’ve simplified the details to help you find out if your EV qualifies for the credit. Whether you’re purchasing a new EV or trying to get the Clean Vehicle Credit on one you already bought, this guide should help. I’ve also compiled a complete list of eligible vehicle models for the first type — new EVs purchased in 2023 or after.<\/p>\n
\n<\/p>\n
The prerequisites for the Clean Vehicle Credit <\/h2>\n
There are a few obstacles to overcome for an EV to be eligible.<\/p>\n
<\/p>\n
Purchased your EV from a dealership, not a private seller.<\/h3>\n
According to the IRS<\/a>, “at the time of sale, a seller must give you information about your vehicle’s qualifications. Sellers must also register online\u2026 If they don’t, your vehicle won’t be eligible.”<\/p>\n
\n<\/p>\n
If you’re looking to buy, make sure to inquire at the dealership about the Clean Vehicle Credit. They’ll most likely provide you with all the information you need and help you through the process of applying.<\/p>\n
<\/p>\n
Final assembly of your EV must have occurred in North America.<\/h3>\n
Otherwise, your EV isn’t eligible for the Clean Vehicle Credit. According to the US Department of Energy (DOE)<\/a>, “to be eligible\u2026 a vehicle must have undergone final assembly in North America. In general, North America includes the United States and Puerto Rico, Canada, and Mexico.”<\/p>\n<\/p>\n
If you don’t know where your EV was assembled, don’t worry. The DOE has a Vehicle Identification Number (VIN) lookup tool<\/a> to find out where your vehicle was last assembled.<\/p>\n<\/p>\n
The VIN is the code stamped on your car’s dashboard, and it’s 17 characters long. Enter your VIN code into the lookup tool that we linked to above, and it will tell you where your car was assembled.<\/p>\n
<\/p>\n
Only pre-owned EVs purchased in or after 2023 and brand-new EVs are eligible<\/h3>\n
This is important for those looking to buy a pre-owned EV, since the law recently changed to exclude pre-owned EVs purchased before 2023.<\/p>\n
\n<\/p>\n
Your adjusted gross income can’t be greater than a certain amount<\/h3>\n\n- New EVs purchased in or after 2023<\/strong>: According to the US Department of Energy<\/a>, “Your modified adjusted gross income (AGI) may not exceed $300,000 for married couples filing jointly, $225,000 for heads of households, [and] $150,000 for all other filers.” <\/li>\n
- Pre-owned EVs purchased in or after 2023<\/strong>: For tax credits to apply, according to the US DOE<\/a>, “Your modified adjusted gross income (AGI) may not exceed $150,000 for married filing jointly, $112,500 for heads of households, [and] $75,000 for all other filers.” <\/li>\n
- New EVs purchased before 2023<\/strong>: For tax credits for vehicles purchased prior to 2023, the DOE doesn’t list any income limits<\/a>. <\/li>\n<\/ol>\n
<\/p>\n\n\n\nIf your EV fulfills the above prerequisites, you can proceed with our guide.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n
<\/section>\n
<\/p>\n
\n<\/p>\n
<\/p>\n
![\"Tesla](\"https:\/\/static0.pocketlintimages.com\/wordpress\/wp-content\/uploads\/2023\/12\/tesla-model-y.jpg\")
Bought a new EV in 2023 or later? Check this list to see if you qualify. <\/h2>\n
If you purchased an EV in 2023 or after, you may be eligible for the Clean Vehicle Credit. This list contains the vehicle models that meet the above prerequisites as well as their maximum credit amounts. However, a spot on this list isn’t a guarantee. The dealership is responsible for confirming the eligibility and providing a time-of-sale report.<\/p>\n
<\/p>\n
New EVs placed into service in the year 2024<\/h3>\n\n
- \n
- Clean Vehicle Credit offers tax breaks for eligible EVs, based on qualification criteria like assembly location and purchase year. <\/li>\n
- Applying for the credit involves submitting Form 8936 with tax returns or coordinating credit transfer through the dealership. Eligibility varies for different EV types and purchase years. <\/li>\n<\/ul>\n<\/div><\/div>\n
<\/section>\n
\n <\/p>\nThe future is looking electric, and vehicles are at the forefront of the revolution. Indeed, 2024 is the year for a whole fleet of new EV models<\/a>. And while we love electric cars for their smooth rides, fast acceleration, and energy efficiency, the real winner is the environment. EVs have the potential to reduce global carbon emissions, and to aid in the transition, the US government offers incentives with substantial tax breaks. Called the Clean Vehicle Credit<\/a>, it’s as high as $7,500.<\/p>\n
<\/p>\n
You may also be able to apply the credit to the final cost of your vehicle through the dealership. It’s like a discount subsidized by the government, and it circumnavigates the tax return snafu. But not every EV is eligible.<\/em><\/p>\n
\n<\/p>\n<\/p>\n
Determining if your EV qualifies is tricky. For one, there are several types of EVs: all-electric, plug-in hybrids, and fuel-cell models. Each type has its own qualifications and credit amounts. To complicate matters further, your eligibility depends on the year the vehicle was purchased, among other prerequisites.<\/p>\n
<\/p>\n
The eligible EVs are broken down into three types:<\/h3>\n
- \n
- New EVs purchased in 2023 or after <\/li>\n
- New EVs purchased before 2023 <\/li>\n
- Pre-owned EVs purchased in 2023 or after <\/li>\n<\/ul>\n
<\/p>\n
To help folks navigate the bureaucratic jargon, I’ve simplified the details to help you find out if your EV qualifies for the credit. Whether you’re purchasing a new EV or trying to get the Clean Vehicle Credit on one you already bought, this guide should help. I’ve also compiled a complete list of eligible vehicle models for the first type — new EVs purchased in 2023 or after.<\/p>\n
\n<\/p>\nThe prerequisites for the Clean Vehicle Credit <\/h2>\n
There are a few obstacles to overcome for an EV to be eligible.<\/p>\n
<\/p>\n
Purchased your EV from a dealership, not a private seller.<\/h3>\n
According to the IRS<\/a>, “at the time of sale, a seller must give you information about your vehicle’s qualifications. Sellers must also register online\u2026 If they don’t, your vehicle won’t be eligible.”<\/p>\n
\n<\/p>\nIf you’re looking to buy, make sure to inquire at the dealership about the Clean Vehicle Credit. They’ll most likely provide you with all the information you need and help you through the process of applying.<\/p>\n
<\/p>\n
Final assembly of your EV must have occurred in North America.<\/h3>\n
Otherwise, your EV isn’t eligible for the Clean Vehicle Credit. According to the US Department of Energy (DOE)<\/a>, “to be eligible\u2026 a vehicle must have undergone final assembly in North America. In general, North America includes the United States and Puerto Rico, Canada, and Mexico.”<\/p>\n
<\/p>\n
If you don’t know where your EV was assembled, don’t worry. The DOE has a Vehicle Identification Number (VIN) lookup tool<\/a> to find out where your vehicle was last assembled.<\/p>\n
<\/p>\n
The VIN is the code stamped on your car’s dashboard, and it’s 17 characters long. Enter your VIN code into the lookup tool that we linked to above, and it will tell you where your car was assembled.<\/p>\n
<\/p>\n
Only pre-owned EVs purchased in or after 2023 and brand-new EVs are eligible<\/h3>\n
This is important for those looking to buy a pre-owned EV, since the law recently changed to exclude pre-owned EVs purchased before 2023.<\/p>\n
\n<\/p>\nYour adjusted gross income can’t be greater than a certain amount<\/h3>\n
- \n
- New EVs purchased in or after 2023<\/strong>: According to the US Department of Energy<\/a>, “Your modified adjusted gross income (AGI) may not exceed $300,000 for married couples filing jointly, $225,000 for heads of households, [and] $150,000 for all other filers.” <\/li>\n
- Pre-owned EVs purchased in or after 2023<\/strong>: For tax credits to apply, according to the US DOE<\/a>, “Your modified adjusted gross income (AGI) may not exceed $150,000 for married filing jointly, $112,500 for heads of households, [and] $75,000 for all other filers.” <\/li>\n
- New EVs purchased before 2023<\/strong>: For tax credits for vehicles purchased prior to 2023, the DOE doesn’t list any income limits<\/a>. <\/li>\n<\/ol>\n
<\/p>\n
\n \n\nIf your EV fulfills the above prerequisites, you can proceed with our guide.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n
<\/section>\n
<\/p>\n
\n<\/p>\n<\/p>\n
Bought a new EV in 2023 or later? Check this list to see if you qualify. <\/h2>\nIf you purchased an EV in 2023 or after, you may be eligible for the Clean Vehicle Credit. This list contains the vehicle models that meet the above prerequisites as well as their maximum credit amounts. However, a spot on this list isn’t a guarantee. The dealership is responsible for confirming the eligibility and providing a time-of-sale report.<\/p>\n
<\/p>\n
New EVs placed into service in the year 2024<\/h3>\n
\n - Pre-owned EVs purchased in or after 2023<\/strong>: For tax credits to apply, according to the US DOE<\/a>, “Your modified adjusted gross income (AGI) may not exceed $150,000 for married filing jointly, $112,500 for heads of households, [and] $75,000 for all other filers.” <\/li>\n
- New EVs purchased in or after 2023<\/strong>: According to the US Department of Energy<\/a>, “Your modified adjusted gross income (AGI) may not exceed $300,000 for married couples filing jointly, $225,000 for heads of households, [and] $150,000 for all other filers.” <\/li>\n
![\"A](\"https:\/\/static0.pocketlintimages.com\/wordpress\/wp-content\/uploads\/2024\/03\/rivian-r1s.jpg\")
If my EV qualifies for a tax credit, how do I apply for it? <\/h2>\n![\"F150](\"https:\/\/static1.pocketlintimages.com\/wordpress\/wp-content\/uploads\/2024\/03\/f150-lightning.jpg\")
<\/picture> <\/figure>\n<\/p><\/div>\n![\"Cooler](\"https:\/\/m.media-amazon.com\/images\/I\/51WfytAtGCL._SS300_.jpg\")
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