If you place a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in service during 2023 or after, you may qualify for a clean vehicle tax credit.
Who qualifies for the credit?
Individuals can qualify for a credit up to $7,500 if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). To qualify, you must buy the vehicle for your own use, and operate the vehicle primarily in the United States. In addition, your modified adjusted gross income cannot exceed the following amounts:
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
What vehicles qualify?
According to the IRS, "to qualify, a vehicle must:
- Have a battery capacity of at least 7 kilowatt hours
- Have a gross vehicle weight rating of less than 14,000 pounds
- Be made by a qualified manufacturer.
- FCVs do not need to be made by a qualified manufacturer to be eligible. See Rev. Proc. 2022-42 for more detailed guidance.
- Undergo final assembly in North America
- Meet critical mineral and battery component requirements (as of April 18, 2023).
The sale qualifies only if:
- You buy the vehicle new
- The seller reports required information to you at the time of sale and to the IRS. Sellers are required to report your name and taxpayer identification number to the IRS for you to be eligible to claim the credit.
In addition, the vehicle's manufacturer suggested retail price (MSRP) can't exceed:
- $80,000 for vans, sport utility vehicles and pickup trucks
- $55,000 for other vehicles"
Click here to see if a vehicle is eligible for the new clean vehicle credit.
How much is the credit?
The credit depends on when your vehicle was placed into service.
For vehicles placed in service January 1 to April 17, 2023:
- $2,500 base amount
- Plus $417 for a vehicle with at least 7 kilowatt hours of battery capacity
- Plus $417 for each kilowatt hour of battery capacity beyond 5 kilowatt hours
- Up to $7,500 total
For vehicles placed in service between April 18, 2023 and after:
- $3,750 if the vehicle meets the critical minerals requirement only
- $3,750 if the vehicle meets the battery components requirement only
- $7,500 if the vehicle meets both
Where do I claim the credit?
To claim the credit, please follow the steps below.
- Access your return you wish to claim the credit for
- Federal Section
- Deductions (Select my forms)
- Credits
- Qualified Plug-In Electric Drive Motor Vehicle Credit
- Enter your prior year AGI, select the credit activity, and enter any other applicable information in the corresponding box, then press continue
- Qualifying Vehicle Information
- Enter qualifying vehicle information