As of April 18, 2023, the federal income tax credit rules for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) changed. The previous law has been replaced by a series of rules that consider vehicle price, the source of battery compone
Under the Inflation Reduction Act (IRA), the EV Tax Credit was extended for several more years. It will also be expanded to cover both new and used cars. The original EV tax credit, known as the plug-in electric vehicle credit, has been rebranded to the
In 2023, the credit is renamed the Clean Vehicles Credit. There’s also a new Credit for Previously-Owned Clean Vehicles that benefits used electric vehicle buyers beginning in 2023. Read on as we share the details about the cars that qualify for a tax credit. Who qualifies for the Clean ...
Volkswagen is currently the only international automaker to have a full battery electric vehicle that is eligible for the full credit.The ID.4 is assembled in Chattanooga, Tennessee, which is one of the prerequisites for eligibility. Earlier this week, the federal government released its list of ...
The following EVs that were placed in service in 2023 from January 1, 2023 through April 17, 2023 were eligible for a Clean Vehicle Tax Credit: Last updated 1/1/24 to reflect the IRS’s 6/15/23 revisions Plugin Hybrid Electric Vehicles (PHEVs) Eligible for a Clean Vehicle Tax Credit ...
The Obama administration created the tax break -- known officially as the "Plug-In Electric Drive Vehicle Credit" -- in 2008 to both spur automakers to go electric and induce consumers to switch to greener cars, which tend to be pricier. ...
2023-24 Tesla Model Y EV $7,500 $80,000 What About Used Vehicles and Leased Vehicles? The Clean Vehicle Tax Credit extends to used electric vehicles from model year 2022 or earlier. It is worth 30% of the sales price, up to a maximum credit of $4,000. For used vehicles,...
Pre-2023 Federal Electric Vehicle Tax Credit Overview (Pre-Inflation Reduction Act) Before we get into the current Clean Vehicle Tax Credit details, let’s first recap what the prior generation electric vehicle tax credit looked like, for reference. Starting in 2010, with the passage of theAmeri...
Under the proposed guidance, batteries for EVs must meet a "critical mineral requirement" to be eligible for $3,750 of the tax credit. For those applying for the tax credit on a vehicle purchased in 2023, 40% of the minerals contained in the vehicle's battery must have been extracted or...
Located on the Department of Energy's website, thetoolshows eligible vehicle models along with the corresponding federal tax credit. The new clean vehicle tax credit is for purchases of all-electric, plug-in hybrid electric andfuel cellelectric vehiclesin 2023 and beyond. A separate credit is ...