Don’t Wait — Act Now

The EV tax credit is a federal incentive designed to encourage people to purchase EVs. Residents who meet the income requirements —and who buy a qualifying vehicle that satisfies the price, battery and assembly restrictions — may be eligible to receive up to $7,500 from the government in the form of a federal EV tax credit.

For new vehicles, eligible customers may receive up to a $7,500 federal tax credit (based on assembly and battery component criteria). For used electric or plug-in hybrid vehicles, the credit may be the lesser of $4,000 or 30% of the vehicle’s sale price.

Ensure you receive documents from the seller when purchasing your EV. If you claim the credit on your tax return, the seller must give you a report detailing the sale and vehicle specs. If transferring the credit to the dealer, you must provide ID and confirm eligibility at the time of purchase.

If claiming on your tax return:

• Get a report from the seller with buyer/seller names and TINs, sale date, price, VIN, and battery details.
• Seller must sign under penalty of perjury.

If transferring to the dealer:

• Provide your TIN (usually SSN) and photo ID at time of sale.
• Confirm MAGI eligibility, repayment responsibility, personal use, and that you will file taxes with vehicle info.

Federal EV Tax Credit income limits:

• New EVs: $150,000 (single), $225,000 (head of household), $300,000 (joint filers)
• Used EVs: $75,000 (single), $112,500 (head of household), $150,000 (joint)
• No income limits for commercial use EVs (up to $7,500 credit)

Ineligible vehicles:

• Sedans over $55,000 MSRP
• SUVs, vans, trucks over $80,000 MSRP

Used EVs must:

• Be at least 2 model years older than current year
• Be sold by a dealership
• Be the first qualifying resale after 8/16/2022
• Be priced under $25,000

• New vs. used vehicle
• Assembly and battery sourcing compliance
• Commercial use status
• Income eligibility
• Vehicle MSRP