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 buy 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. Find out if you qualify. 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. 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. See our index of qualified manufacturers and vehicles. 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 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 options, accessories and trim but excluding destination fees. It isn't necessarily the price you pay. To confirm whether a vehicle is a van, sport utility vehicle, pickup truck or other, see our qualified vehicles and manufacturers. 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. To check online if a specific vehicle meets the requirements for final assembly location, go to the Department of Energy's page on Electric Vehicles with Final Assembly in North America and use the VIN Decoder tool under "Specific Assembly Location Based on VIN." 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
