2023 Electric Vehicle Tax Credit Rules Simplified: See Which Cars Qualify

NEWPORT BEACH, Calif. - April 10, 2023 - PRLog -- The EV tax credit ranges from $2,500 to $7,500 for new cars (depending on battery capacity) and up to $4,000, limited to 30% of the sale price, for used EVs. Eligibility depends on the vehicle's weight, the number of cars the manufacturer has sold and whether you own the car.

Eligibility Rules
You must own the car. Leased cars don't qualify.
The car must weigh less than 14,000 pounds.
A new clean vehicle is a clean vehicle bought on or after January 1, 2023.
The credit is nonrefundable, meaning iit can lower your tax bill to zero, but you won't get a cash refund.
To claim the credit, taxpayers must file Form 8936 on their federal income taxes.
If you expect to receive a car purchased with a written binding contract after the tax-filing deadline, you'll need to submit an amended return to claim the credit once the car is delivered.
You can only claim one credit per vehicle.
Manufacturing caps will be lifted so cars like Tesla and GM, which sold more than 200,000 qualifying vehicles are now eligible.
The tax credit can only be claimed once every three years.
Taxpayers with eligible cars can claim credit from 2023 to 2032. Taxpayers can only claim one credit per vehicle.
Vans, SUVs and pickup trucks must have an MSRP of $80,000 and under. The cap does not include taxes and dealership fees.
Sedans, coups and other passenger cars are capped at $55,000. The cap does not include taxes and dealership fees.
Vehicle cannot be acquired for resale.

On Used Cars
Clean vehicles purchased and delivered from Aug. 17, 2022, to Dec. 31, 2022 must have had their final assembly in North America to be eligible. See this list for qualifying cars.
The used car must be a plug-in electric or fuel cell.
Only the first transfer of a vehicle qualifies for the tax credit.
Purchase price of a used car must be $25,000 or less.
A used car model must be at least two years old.

To see a list of cars and income caps, visit https://smartfinancial.com/ev-tax-credits