Maximize Savings with the Used Clean Vehicle Tax Credit
Are you considering purchasing a used electric or hybrid vehicle? The Used Clean Vehicle Tax Credit can help you save thousands of dollars on your next used car purchase. This federal incentive is designed to promote eco-friendly transportation by offering a tax credit of up to $4,000 for qualifying vehicles. Used clean vehicles, including electric, plug-in hybrid, and hydrogen fuel cell cars, may qualify for this valuable credit.
What is the Used Clean Vehicle Tax Credit?
The Used Clean Vehicle Tax Credit, also known as the Qualified Plug-In Electric Drive Motor Vehicle Credit, is a federal tax incentive available to individuals and businesses that purchase eligible used electric vehicles (EVs) or plug-in hybrids. The credit amount varies based on the vehicle’s battery capacity and other specifications. For used vehicles, the maximum credit is up to $4,000 or 30% of the vehicle’s sale price, whichever is less.
IRS Source on the Used Clean Vehicle Tax Credit: https://www.irs.gov/credits-deductions/used-clean-vehicle-credit
Who Qualifies for the Used Clean Vehicle Tax Credit?
To qualify for the Clean Vehicle Tax Credit, you must meet specific eligibility requirements:
The vehicle must be on the list of eligible makes and models, which includes various electric, plug-in hybrid, and hydrogen fuel cell vehicles that are under $25,000 or less. Vehicle model year must be at least 2 years earlier than the calendar year when you purchase it.
Buyers of used clean vehicles must have a modified adjusted gross income (MAGI) of less than $150,000 for joint filers, $112,000 for heads of household and $75,000 for all other filers.
The credit is only available to the person who bought the vehicle for use and not sale, not the original owner, not a dependent on another person’s tax return, and not have claimed another used clean vehicle credit in the 3 years before the purchase date.
IRS Source on Qualifying Vehicles: https://fueleconomy.gov/feg/taxused.shtml
How to Claim the Used Clean Vehicle Tax Credit
To claim the Clean Vehicle Tax Credit, you must:
Eligible vehicles must have a battery capacity of at least 7 kw hours, have a gross vehicle weight rating of less than 14,000 lbs., be made by a qualified manufacturer, undergo final assembly in North America and meet critical mineral and battery component requirements. Ensure that your vehicle is eligible by checking the IRS list of qualifying vehicles.
The manufacturer must certify that the vehicle meets the requirements for the credit.
Complete and submit IRS Form 8936 with your federal tax return to claim the credit. For used vehicles, you may need additional documentation, such as the vehicle identification number (VIN).
Why Choose a Used Clean Vehicle?
Switching to a used clean vehicle not only helps reduce your carbon footprint but also offers long-term cost savings. Clean vehicles typically have lower maintenance and fuel costs compared to traditional gasoline-powered cars. Plus, with federal incentives like the Used Clean Vehicle Tax Credit, you can lower your initial investment and enjoy significant tax savings.
Maximize Your Savings with the Used Clean Vehicle Tax Credit Today!
Don’t miss out on the opportunity to save money while contributing to a greener future. Check if your next pre-owned vehicle purchase qualifies for the Used Clean Vehicle Tax Credit and start enjoying the benefits of driving a clean, efficient car.
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