Federal Tax Credits
Used Vehicles: Max of $4,000 off the purchase of a used EV less than $25,000 from a dealer.
Great news! The Inflation Reduction Act contains a new tax credit for the purchase of a used EV.
- Your adjusted income must be less than $75,000 for single filers, $112,500 for head of households and $150,000 for couples.
- The car must have a sale price of less than $25,000.
- Only purchases from an auto dealer will be eligible for this credit,
- The EV must be at least two years old,
- It only applies to the first resale of the vehicle.
- The domestic production and sourcing requirements placed on new EVs will not apply to used EVs.
|Date||Jan. 1, 2023||Jan 1, 2024|
|Final Assembly Requirement||No||No|
|Transfer Credit Direct to Auto Dealer||No||Yes|
|Per Vehicle Price Cap||$25,000||Same|
|Taxpayer income limit||$75,000 for single filers, $112,500 for head of households and $150,000 for couples. (Adjusted Gross Income)||Same|