On December 29, 2022, the Internal Revenue Service (IRS) announced that an amendment had been made to the Clean Vehicle Credit that was established in August of 2022. These updates clarify the qualifications and requirements that clean vehicle owners need to meet if they want to take advantage of this tax credit. To save you time, we’ve put together this nifty little blog with an overview about what changes were made and also included resources from the IRS for additional information.
Change Takeaways
Vehicles purchased between 8/17/2022 – 12/31/2022
- Now includes fuel cell electric vehicles (FCVs)
- Dealer must provide tax documents to the customer at the time of sale***
- Vehicle might not qualify if it was produced by a manufacturer with a 200,000 unit cap for Clean Vehicle Credits – verify manufacturer here.
- Final assembly must be completed in North America (Canada, US, Puerto Rico, & Mexico)
- Determine if your vehicle went through final assembly in North America by using the IRS VIN decoder here.
- Read further information about qualified EVs that were purchased within these dates here
New vehicles purchased from 1/1/2023 onward
- Now includes fuel cell electric vehicles (FCVs)
- Battery must be at least 7 kilowatt hours**
- Gross vehicle weight must be less than 14,000 lbs
- Customer must be within the stated income limits*
- Dealer must provide tax documents to the customer at the time of sale***
- Must be produced by a qualified manufacturer with final assembly in North America (Canada, US, Puerto Rico, & Mexico)
- Find out if your new EV qualifies here
- Must be within MSRP limitations
- $80,000: SUVs, vans, and pickup trucks
- $55,000: All other clean vehicles
Previously owned vehicles purchased from 1/1/2023 onward
- Now includes fuel cell electric vehicles (FCVs)
- Battery must be at least 7 kilowatt hours
- Gross vehicle weight must be less than 14,000 lbs
- Must costs less than $25,000
- Credit will be 30% of sale price, up to $4,000
- Must be at least 2 years older than the year it was purchased (ex: Vehicle purchased in 2023, must be a 2021 model, or older)
- Find out if your previously owned EV qualifies here
- To claim credit, you cannot have another used EV or FCV claimed for the clean vehicle credit within 3 years before purchase date
We know that change can sometimes be scary, but as long as we keep informed, it doesn’t have to be! Keep reading to learn more about the items listed above with asterisks at the end of them. Again, we’ve included resources straight to the IRS websites for your convenience.
