If you bought a qualifying car, then you may be in for some free money under the Clean Car Credit.

Qualified Americans can receive up to $4,000 in Tax Clean Car Credit

As of January 1, 2023, purchasers of qualified used electric cars may be qualified to receive a tax credit under the Clean Car Credit. The tax Clean Car Credit is referred to as the used clean vehicle tax credit, or the beforehand owned clean vehicle credit.

The plug-in car must have been bought from a licensed dealer for $25,000 or less. The tax Clean Car Credit is equal to 30% of the purchasing price of the car or light truck, up to the max credit of $4,000.

According to the IRS, the Clean Car Credit is nonrefundable so you cannot get back more on the credit than you owe in taxes. Taxpayers can also not apply excess credit to future tax years.

Read Also: EV Tax Credits 2024: Saving Big On Electric Vehicle Purchases

Clean Car Credit Payment: How to be eligible

Upon buying the used electric vehicle, the seller must give you information details regarding your vehicle’s qualifications and also must register online and report the same information to the IRS to receive the tax Clean Car Credit.

If the buyer fails to do so, then your vehicle will not be eligible for the tax Clean Car Credit.

Read Also: Growing Appeal: Dealers Embrace 2024’S IRA EV Tax Credits