President Biden signed the Inflation Reduction Act last year that authorized tax credits for new and used electric vehicles. Many used electric vehicles could get a maximum credit of $4,000.
Starting in 2023, used Electric vehicles that are at least two years old have a distinct tax credit of up to $4,000
The Clean Vehicle Tax Credit announced new conditions for a model of used Electric vehicles to be eligible for incentives directed under Internal Revenue Code Section 25E.
If you’re planning of buying Used Electric vehicles, you’ll need to know if your used car qualifies for a Clean Vehicle Tax Credit.
What Used Electric Vehicles Qualify for a Clean Vehicle Tax Credit?
A Used Electric Vehicle should meet the requirements to qualify for the tax credits. According to Electrek, a used Electric Vehicle must:
- Have a sale value of $25,000 or less.
- Have a model year of at least two years
- Not have already been transferred to an eligible buyer after August 16, 2022.
- Have a gross vehicle weight of less than 14,000 pounds.
- Be an eligible FCV
- Be for use mainly in the United States.
- Used Electric Vehicles were Purchased from a certified dealer
- Be claimed for the tax credit only once
Who Qualifies for a Used Electric Vehicles Tax Credit?
- Be an individual who bought the Used Clean Vehicles for use and not reselling.
- Not be the original owner.
- Not be claimed as a dependent on another person’s tax rebates.
- Not have claimed another Used Electric Vehicles credit in the 3 years before the purchase date.
What Used Models Are Eligible for a Clean Vehicle Tax Credit?
A revised list of Used Electric Vehicles models that could qualify for the full $4,000 tax credit can be checked on the Electrek site or the Energy Efficiency & Renewable Energy website.
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