How can I qualify for a new clean vehicle tax credit?

Did you buy a Tesla or another EV car in 2023? This credit may be applicable to you.

If you place in service a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after, you may qualify for a clean vehicle tax (non-refundable) credit. The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.

Amount of credit: You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The amount of the credit depends on when you placed the vehicle in service (took delivery), regardless of purchase date.

How to qualify: The credit is available to individuals and their businesses.

To qualify, you must:

• Buy it for your own use, not for resale and not leased. 

• Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

• $300,000 for married filing jointly 

• $225,000 for heads of households

• $150,000 for all other filers

How can I claim this credit on my tax return: we will e-file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles).