New and Used Clean Vehicle Credit
Caution
Under OBBBA the various clean vehicle credit’s sunset dates has been moved up to September 30, 2025
Overview
Post 2022 Credits
Transition Rule
New Clean Vehicle Credit
-
Effective: 2023 through September 30, 2025
-
$7,500 Max Credit
-
MAGI Limitation
-
Vehicle Price Limits
-
7 Kilowatt Minimum
-
200,000 Unit Limit Eliminated
Previously Owned Clean Vehicle Credit
-
Effective: 2023 through September 30, 2025
-
Credit Lesser of $4,000 or 30% of Cost
-
MAGI Limitation
-
Max Purchase Price $25,000
-
7 Kilowatt Minimum
-
No Credit for Dependents of Another
Credit Transfer to Dealer
-
Must Be Applied For By Dealer
-
Repayment Tax Trap
-
Only Effective After 2023
Qualified Commercial Clean Vehicle Credit
-
Effective: 2023 through September 30, 2025
-
15 Kilowatt Hours Battery (7 if less than 14K pounds)
-
Credit: 15% or 30% of Vehicle Basis
-
Maximum Credit $40,000
Alt Fuel Vehicle Refueling Property Credit
-
Extended through September 30, 2025
-
Credit 6% or 30%
-
Includes wage & apprenticeship limitations
Pre 2023 Credits
Four Wheeled Plug-in Electric Drive Vehicles
-
Effective through 2022.
-
After 2022 Clean Vehicle Credit (see below) becomes effective.
-
Credit: $2,500 + $417 (if battery capacity not less than 5 KWH) + $417 per KWH in excess of 5 KWH. Maximum Credit: KWH component limited to $5,000; overall limit $7,500
-
Qualifying Vehicle: 4-Wheel highway vehicle that draws propulsion using a rechargeable battery with at least 4 kilowatt hours of capacity. Must have a gross weight of less than 14,000 pounds
-
Acquired for use or lease by the taxpayer and not for resale
-
Effective: 2009 through 200,000 vehicle phase-out process
2-Wheeled (Motorcycle) Vehicle Credit - Expired after 2021
Related IRC and IRS Forms & Publications
-
Form 8936 – Qualified Plug-in Electric Drive Vehicle Credit
-
Form 3800 – General Business Credit
-
Instructions 3800 – Instructions for General Business Credit
-
IRC Sections 25E, 30B, 30C, 30D, 45W
-
Inflation Reduction Act of 2022