Used EV Tax Credit
- Available through
- Dec 31, 2032
- Technology
- All-electric vehicles, Plug-in hybrid vehicles (Used)
- Customer
- Residential
- Customer Eligibility
- Income-qualified
- Tax Credit Value
- $0 to $4,000
Provided by: U.S. Internal Revenue Service
Overview
When purchasing a used EV, you might be eligible for a federal tax credit (called the Used Clean Vehicle Credit) of 30% of the purchase price, up to $4,000.
Eligibility
Vehicle requirements
- The tax credit must be claimed for the year the vehicle was purchased.
- The vehicle must be purchased for $25,000 or less.
- The vehicle model year must be at least 2 years old.
- The vehicle must be purchased through a dealership which can provide an IRS EV time-of-sale report.
- The vehicle must not have been sold to a qualifying buyer since August 16, 2022. Check the vehicle history report and consult the dealer for information on this requirement.
- The vehicle must have a gross vehicle weight of less than 14,000 pounds.
- The battery must have a capacity of at least 7 kWh.
Buyer requirements
- The vehicle must be for personal use, not for resale.
- Must not be the original owner.
- Must not be claimed as a dependent on another person’s tax return.
- Must not have claimed another used EV federal tax credit in the 3 years before the purchase date.
- Buyer must meet the Adjusted Gross Income (AGI) requirements:
- $75,000 or less (individual)
- $150,000 or less (married filing jointly)
- $112,500 (head of household)
How to Redeem
- First, confirm you're eligible for the federal tax credit by reviewing the IRS guidance. You can use this FuelEconomy.gov tool to confirm whether your vehicle is eligible.
- Decide whether you want to take the credit immediately (by having your dealer apply the incentive to your purchase at the time of sale) or take the credit when you file your next tax return. We recommend working through a dealer, which allows you to get the financial benefit much sooner and ensures you get the full benefit regardless of your tax liability.
- Purchase the vehicle and receive an IRS time-of-sale report from your dealership, which confirms your eligibility for the tax credit and whether it was passed through by the dealer.
- File Form 8936 (Clean Vehicle Credits) when you file your tax return for the year you purchased the vehicle. You need to file this form regardless of which way you received the tax credit (dealer pass-through or waiting to claim on your return).
- Consult a tax professional for additional support
- Additional resources
- IRS checklist
- Step-by-step guide