EV Tax Credit thread
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Pole Position
Joined: Jul 2001
Posts: 2,372
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From: Silicon Valley
EV Tax Credit thread
Since there has been so many misinterpretations and misinformation about the new EV tax credit, thought we should have a thread to educate folks and also keep things up to date (as new IRS interpretations do change making models qualify/disqualify at times as well).
- Old tax credit : if you purchased or ordered AND placed a significant deposit down (exact amount is still disputed) before 1/1/23, and your vehicle mfg and model qualifies for the tax credit, you can still deduct it from your tax liabilities. there is no income or price limits.
- New tax credit :
* purchases have to be meet both the mineral requirement (3750) as well as battery sourcing (3750) requirements. furthermore there are restrictions on income as well as pricing contingent on whether it is classified as a car ($55k) or suv ($80k). and again this is credited against your tax liability. Note, there are further date restrictions on this (see IRS guidance below)
* leases present a loophole as the 7500 credit can be used at the time of sale and doesn't have income or vehicle cost restrictions. it is strictly up to the vehicle mfg. whether they want to pass along the savings to the customer or not.
* used cars can also have a 4000 tax credit as long as it is sold by a dealership, is under $25k, and is more than 2 years old, and has strict income restrictions.
https://www.irs.gov/credits-deductio...-2023-or-after
- Old tax credit : if you purchased or ordered AND placed a significant deposit down (exact amount is still disputed) before 1/1/23, and your vehicle mfg and model qualifies for the tax credit, you can still deduct it from your tax liabilities. there is no income or price limits.
- New tax credit :
* purchases have to be meet both the mineral requirement (3750) as well as battery sourcing (3750) requirements. furthermore there are restrictions on income as well as pricing contingent on whether it is classified as a car ($55k) or suv ($80k). and again this is credited against your tax liability. Note, there are further date restrictions on this (see IRS guidance below)
* leases present a loophole as the 7500 credit can be used at the time of sale and doesn't have income or vehicle cost restrictions. it is strictly up to the vehicle mfg. whether they want to pass along the savings to the customer or not.
* used cars can also have a 4000 tax credit as long as it is sold by a dealership, is under $25k, and is more than 2 years old, and has strict income restrictions.
https://www.irs.gov/credits-deductio...-2023-or-after
Lexus Champion
Joined: Oct 2019
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From: California
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