New requirements effective April 18 If you take possession of a new clean vehicle on or after April 18, 2023, it must meet critical mineral and battery component requirements to qualify for the credit. This applies even if you bought the vehicle before April 18. Find details in Q6 under Topic A in the fact sheetPDF. If you place in service a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after, you may qualify for a clean vehicle tax credit. At the time of sale, a seller must give you information about your vehicle's qualifications. Sellers must also register online and report the same information to the IRS. If they don't, your vehicle won't be eligible for the credit. Find information on credits for used clean vehicles, qualified commercial clean vehicles, and new plug-in EVs purchased before 2023. Who qualifies You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032. The credit is available to individuals and their businesses. To qualify, you must: Buy it for your own use, not for resale Use it primarily in the U.S. In addition, your modified adjusted gross income (AGI) may not exceed: $300,000 for married couples filing jointly $225,000 for heads of households $150,000 for all other filers You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit. The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years. Credit amount The amount of the credit depends on when you placed the vehicle in service (took delivery), regardless of purchase date. 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 In general, the minimum credit will be $3,751 ($2,500 + 3 times $417), the credit amount for a vehicle with the minimum 7 kilowatt hours of battery capacity. For vehicles placed in service April 18, 2023 and after: Vehicles will have to meet all of the same criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to: $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 A vehicle that doesn't meet either requirement will not be eligible for a credit. Qualified vehicles 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 MSRP is the retail price of the automobile suggested by the manufacturer, including manufacturer installed options, accessories and trim but excluding destination fees. It isn't necessarily the price you pay. You can find your vehicle's weight, battery capacity, final assembly location (listed as “final assembly point”) and VIN on the vehicle's window sticker. Click the button below to see if a vehicle is eligible for the new clean vehicle credit. Go to fueleconomy.gov How to claim the credit To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return. You will need to provide your vehicle's VIN. Related Credits for new electric vehicles purchased in 2022 or before Used Clean Vehicle Credit Commercial Clean Vehicle Credit Credits and deductions under the Inflation Reduction Act of 2022 Frequently asked questions about the new, previously owned and qualified Commercial Clean Vehicles Credit Publication 5866, New Clean Vehicle Tax Credit ChecklistPDF
