Used Clean Vehicle Tax Credit Requirements
Pre-owned electric vehicles purchased on or after January 1, 2023 are eligible for a tax credit of 30% of the price of the vehicle up to $4,000.
Vehicle Eligibility
Vehicles must meet all of the following requirements:
1. The vehicle you purchase must be listed on this website: https://fueleconomy.gov/feg/taxused.shtml
2. The vehicle must have a sale price of $25,000 or less.
3. Vehicle must have a model year at least two years prior to the current calendar year (So for 2023, the vehicle must be MY 2021 or earlier).
4. Must be sold by a dealer.
Purchaser Eligibility
You must meet all of these requirements:
1. As the purchaser, you must meet income limits:
$150,000 for joint filers,
$112,500 for head of household, or
$75,000 for single filers
Tip: Only one taxpayer can claim the tax credit, so if you file jointly, and one of you makes less than $75,000 a year, you may consider filing separately so that the taxpayer who earns less can clam the tax credit.
2. You must have tax liability, the tax credit is nonrefundable, so you can’t get more back in the tax credit than you owe the year the vehicle was placed in service.
3. A purchaser is eligible for a used EV tax credit once every 3 years.
Other Requirements
These other requirements must be met to receive the clean vehicle tax credit:
Vehicle must be purchased for personal use, not for resale.
You can’t be the original owner of the vehicle.
You can’t be claimed as a dependent on someone else’s tax return.
Vehicle must be primarily used in the U.S.
Each vehicle is only eligible for one tax credit, so once a tax credit is claimed after August 16, 2022 the used vehicle is no longer eligible for the tax credit.
Dealer must report required information to you at the time of sale and to the IRS.
Businesses, non-profits, and fleets cannot receive the used EV tax credit.
Frequently Asked Questions for Used EVs
1. How much is the tax credit?
The previously-owned clean vehicle tax credit can be up to $4,000 or 30% of the vehicle sales price, whichever is less.
2. Can businesses receive the previously-owned clean vehicle tax credit?
No, only individuals can receive the previously-owned clean vehicle tax credit.
3. Do I have to purchase the vehicle from a dealer?
Yes, to be eligible for the tax credit, the vehicle must be purchased from a dealer.
4. If a vehicle has already received a tax credit when it was purchased as new, is it eligible for the used tax credit?
Yes. A vehicle is limited to one credit per vehicle for each type of credit meaning that a vehicle can receive the tax credit as a new vehicle and again as a used vehicle for a different owner.
5. Does the vehicle purchase price for the previously-owned clean vehicle tax credit depend on the type of vehicle purchased, such as a van, pickup truck, SUV or other vehicle?
No, all previously-owned clean vehicles are eligible for a tax credit of up to $4,000 or 30% of the vehicle sales price, whichever is less.
6. Does the amount of the used EV tax credit depend on whether a vehicle is all-electric or plug-in hybrid electric?
No, both all-electric vehicles and plug-in hybrid electric vehicles are eligible for the full $4,000.
