This article provides information on clean vehicle tax credits available in the United States. It covers both new and used electric vehicles (EVs) and fuel cell vehicles (FCVs).
Who can benefit from this guide?
- Individuals considering buying a new EV or FCV
- Individuals who already bought a new EV or FCV in 2023 or later
- Individuals considering buying a used EV or FCV
- Businesses planning to purchase EVs or FCVs
What you’ll learn:
- How to determine if your vehicle qualifies for a tax credit
- The difference in credit rules for new vehicles bought before and after January 1, 2023
- How much credit you can claim
- How to find qualified vehicles
- Requirements for sellers, dealers, and manufacturers
Recent News:
- IRS Tax Time Guide 2024: What You Need to Know to Avoid Penalties?
- Is the IRS Stimulus Check 2024 Really Coming? Unveiling the Truth
New Clean Vehicles (2023 and Later)
This section explains the credit for new EVs and FCVs purchased for personal use in 2023 or later. It includes details on:
- How the credit works
- How to find qualified vehicles
- Changes to the credit under the Inflation Reduction Act of 2022.
On Monday at 12:50 AM, April 22, 2024, @IRSnews shared a FAQ post on Twitter- Clean Vehicle Tax Credits:
Clean vehicle owners: #IRS frequently asked questions explain how the Clean Vehicle Credit works. Find them here: https://t.co/ZVNgzYYzF5 #EarthWeek pic.twitter.com/PSwm6kw5YL
— IRSnews (@IRSnews) April 21, 2024
New Clean Vehicles (Before 2023)
This section details the credit for new EVs and FCVs purchased for personal use in 2022 or earlier. It includes information on:
- How the credit works
- Qualified vehicle makes and models
Clean Vehicles for Business Use
This section covers tax credits available for businesses that purchase or lease EVs and FCVs. It details two separate credits:
- Clean vehicle credit under IRC 30D (for sole proprietorships and other businesses)
- Commercial clean vehicle credit under IRC 45W (for businesses and tax-exempt organizations)
Used Clean Vehicles
This section explains the tax credit available for individuals who purchase a qualifying used EV or FCV. It includes information on:
- How the credit works
- Qualifying vehicle makes and models
Resources for Sellers, Dealers, and Manufacturers
This section provides information for businesses involved in the sale and manufacturing of clean vehicles. It includes:
- How to register a dealership to enable credits for buyers
- Requirements for sellers and dealers
- Requirements for manufacturers
Additional Resources
The article concludes with links to helpful resources, including:
- Frequently Asked Questions about Clean Vehicle Tax Credits
- Information on Form 8936 (used to claim the credit)
- Credits and deductions under the Inflation Reduction Act of 2022
Disclaimer: This article is for informational purposes only and should not be considered tax advice. Always consult with a tax professional for specific guidance.