CLEAN VEHICLE CREDIT

The Clean Vehicle Credit is a tax incentive available for individuals and businesses who purchase or lease qualifying electric or plug-in hybrid vehicles. Beginning Jan. 1, 2024, the credit will be transferrable to dealerships and received as an advance, reducing the up-front cost of the vehicle.

Below are highlights for New EV’s purchased for residential use. Information on Used and Commercial EV Credits can be found by following the link at the bottom of the page.

Highlights

• Vehicles cannot be acquired for resale.
• Final Assembly must be in North America
• Non-refundable credit: You can’t get back more than you owe.
• No Carryforward: You must use it, or you lose the credit.

Transferring Credit to Dealership – Beginning 2024

• Requires signed disclosure from Dealer and Taxpayer.
• If AGI Limit Exceeded, Taxpayer must repay on tax return.
• If Tax liability is not met, no repayment necessary.

Adjusted Gross Income (AGI) Limits – New EV’s

• Married Filing Jointly $300,000
• Head of Household $225,000
• All Other Taxpayers $150,000

Click below for more info.