Used EV Tax Credit

As a means of promoting sustainable transportation, the Internal Revenue Service (IRS) is now offering buyers of qualified used electric vehicles (EV) a tax credit of 30% of the sales price up to a $4,000 maximum. Vehicles must be purchased at less than $25,000 or less from a licensed dealer, like Impex Auto Sales.

To qualify for the used clean vehicle tax credit, buyers must purchase an EV for personal use and not be claimed as a dependent on another individual’s tax return. The tax credit is only available to buyers who have not claimed it previously 3 years before the EV purchase date.

Adjusted Gross Income (AGI) is also considered in eligibility for the used clean vehicle credit as follows:

* Married filing jointly/surviving spouse – AGI not to exceed $150,000

* Heads of households – AGI not to exceed $112,500

* Other filers – AGI not to exceed $75,000

There are two options when claiming the used clean vehicle credit. Buyers can either take advantage of the credit immediately towards the price of the vehicle by transferring the credit to the selling dealer or claim the credit at a later date when filing their annual tax return.

Buyers benefit from the used clean vehicle credit when choosing a used EV, and the environment does, too. No longer emit pollutants during daily commutes and enjoy an overall lower cost of ownership. Generally, maintenance costs are less for an EV, and charging an EV costs pennies on a dollar compared to fuel consumption. Owning an EV is a win-win!