IRS Used Clean Vehicle Tax Credit

Taxpayer income and status

The taxpayer’s modified adjusted gross income for either the current year or prior year must be:
❯ $150,000 or less for joint filers and surviving spouses,
❯ $112,500 or less for head of household filers, or
❯ $75,000 or less for other filers.

Taxpayer status

Taxpayer must be an individual who is not a dependent that is claimed on another taxpayer’s tax return and must be buying the vehicle for use and not resale.

Taxpayer eligibility

Taxpayer must not have claimed this credit in the 3-year period prior to the sale of the qualifying vehicle. Unsure if you qualify? Consult your tax advisor.
Note: 2023 is the first year that this credit can be claimed.

Vehicle type and age

The vehicle is an electric vehicle, plug-in hybrid electric vehicle, or fuel cell vehicle, and the model year is at least two years earlier than the calendar year of your purchase.

Vehicle sale price and dealer

Vehicle sale price is $25,000 or less and the vehicle is sold by a licensed dealer registered with the IRS. The sale price of a previously-owned clean vehicle is the total sale price agreed upon by the buyer and seller in a written contract at the time of sale, including any delivery charges and after the application of any incentives, but excluding separately-stated taxes and fees required by State or local law.

Previous Transfer Status

To be a qualified sale, a transfer must be the first transfer since August 16, 2022, as shown by vehicle history, of a used clean vehicle after the sale to the person with whom the original use of such vehicle commenced.

Time of sale report
(also known as seller report)

Dealer provides buyer a time of sale report (also called a seller report), which will have information such as dealer name, address, VIN, make, model, placed in service date, and maximum credit.