Does the amount of the new 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 tax credit based on whether their batteries meet the critical minerals requirements and the battery component requirements.
If I ordered a vehicle in 2023 and it was delivered in 2024, does the Foreign Entities of Concern rule apply?
Yes, the tax credit guidance is based on when the vehicle is placed in service, so if you take delivery of your vehicle in 2024, the guidance at the time you take delivery of your vehicle will apply. FuelEconomy.gov provides updated information on vehicle eligibility.
Are vehicles made by manufacturers that have sold over 200,000 vehicles eligible for the new clean vehicle tax credit?
Yes. As of Jan.1, 2023, the prior sales volume limits no longer apply. This means GM and Tesla vehicles are eligible for the tax credits if they meet the other eligibility requirements.
Can I get the tax credit by leasing a new clean vehicle?
If you lease a vehicle, the lessor (company that maintains the vehicle title) is the original user. This means that they will claim and receive the tax credit, but they can pass it along to the lessee (you, the customer) in your lease payments. When negotiating your lease terms, simply[…]
What is a qualified manufacturer?
A qualified manufacturer is a manufacturer that enters into a written agreement with the IRS. A list of qualified manufacturers is maintained by the IRS and can be found here.
How do I know whether my vehicle will be defined as a truck, van, SUV or other type of vehicle for the purposes of the MSRP cap?
The vehicle’s classification will be displayed on the window sticker of the vehicle as well as online. FuelEconomy.gov pre-screens which vehicles are eligible for the tax credit. Visit the site, select the delivery date and it will show you which vehicles are eligible for the credit and how much they[…]
How do I determine if the vehicle I want meets the MSRP cap?
The MSRP is the base retail price suggested by the manufacturer, plus the retail price suggested by the manufacturer for each accessory or item of optional equipment physically attached to the vehicle at the time of delivery to the dealer. It does not include destination charges, optional items added by[…]
Are the income limits talking about gross income or something else?
The income limits are based on Modified Adjusted Gross Income. According to the IRS, your modified AGI is the amount from line 11 of your Form 1040 plus: Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income. Any amount excluded from gross income because it[…]
What if you expect your income to be different this year than last year?
You will qualify based on the Modified Adjusted Gross Income (MAGI) which is the lesser of the two years. For example: You are a single filer and had a MAGI of $145,000 in 2023 but expect to make $155,000 in 2024. The single-filer limit is $150,000. Your MAGI for 2023[…]
Which year are the income limits for?
To qualify for the tax credit, your Modified Adjusted Gross Income (MAGI) must be below the threshold amount for the current taxable year or the preceding year. For example, if it is 2024, then you need to meet the income limits in either 2023 or 2024.
Does this guidance apply to when I ordered the vehicle or when I received it?
The guidance applies to the day you receive your vehicle, not when you order it or put a deposit on it. For example, if you ordered your EV in 2023 and you pick it up in May of 2024, you would follow the guidance that applies in May of 2024[…]
What time period does the information on this page cover?
This page covers the time period beginning on January 1, 2024, and onward. This guidance and the list of eligible vehicles will continue to change, so check https://fueleconomy.gov frequently. If you received your car before January 1, 2024, find the correct resource page linked at the top of this page.
How much is the tax credit?
The tax credit is made up of two components. The vehicle is eligible for $3,750 if it meets the critical minerals requirements and $3,750 if it meets the battery components requirement. If it meets both of these requirements, it is eligible for a $7,500 tax credit. If it meets one[…]
