If you buy a qualified used electric vehicle or fuel cell vehicle from a licensed dealer for 25,000 dollars or less, you may be eligible for a used clean vehicle tax credit.
The credit equals 30 percent of the sales price, up to a maximum of 4,000 dollars.
If you purchased your vehicle before 2023, you don't qualify.
To qualify for the tax credit:
The vehicle must be purchased for your own use and not for resale.
As the buyer, you can't:
- Be the original owner of the vehicle.
- Be claimed as a dependent on another person's tax return; or
- Have claimed another used clean vehicle credit in the 3 years before the purchase date.
Income limitations also apply.
Some of the qualifications for the vehicle include:
- A battery capacity of at least 7 kilowatt hours.
- A gross vehicle weight rating of less than 14,000 pounds.
- Sales price before credit of 25,000 dollars or less.
- And the seller must report the sale – with the buyer's Taxpayer Identification Number – to the IRS.
To learn more about this credit and which clean vehicles qualify for the credit, visit IRS.gov/cleanvehicles.