Q&A of the Week December 6, 2023

Question

What is the Used Clean Vehicle Credit and how do I know if I qualify?

Answer

The Used Clean Vehicle Credit is 30% of the sales prices, up to $4,000, for individuals who purchased a qualified used electric vehicle (EV) or fuel cell vehicle (FCV) after January 1, 2023.

If your credit is more than you owe for your 2023 tax return, you do not receive the additional money from the credit and it cannot be applied to a future tax bill.

For the vehicle to qualify, the seller must:

1. Provide information about the vehicle's qualifications when it is purchased and 

2. Register the vehicle online and provide the same information to the IRS

To qualify for the credit, individuals must:

• Purchase the vehicle to use and not to resell

• Not be the original owner of the vehicle

• Not be claimed as a dependent on someone else's tax return

• Not have claimed a used vehicle credit for at least 3 years prior to the purchase date

• Not have an adjusted gross income that exceeds $115,000 for married filing jointly, $112,500 for head of household, or $75,000 for other tax filers

Read more about the Used Clean Vehicle Credit from the IRS: HERE