Inflation reduction act - UPDATES TO EV TAX CREDITS
IRA Signed on 8/16/2022 - GUIDANCE UPDATED JULY 2024
The Inflation Reduction Act of 2022 (IRA) changed the eligibility rules and potential credit amounts available on clean vehicle tax credits across the board.
The U.S. Treasury Department and IRS has released updated guidance on clean vehicle purchases and how the new Inflation Reduction Act applies to tax credits multiple times:
- Clean Vehicle Tax Credits must now be initiated and approved at the time of sale (at dealership)
- Taxpayer income (AGI) limits now apply ($300k Joint/Survivor, $225k Head of House, $150k all others)
- Vehicle MSRP caps have changed (Truck/Van/SUV is $80k, All other passenger vehicles is $55k)
- Vehicle weight maximum (14,000 lbs.) and 7kWH battery minimum required
- Final vehicle assembly location requirement applies (VIN Lookup Tool: VIN Decoder | NHTSA )
- Critical mineral battery requirements have been established
- Dealership time of sale "seller report" requirements have been established, buyers must keep to file taxes
- Eligible EV Models have been updated, and credits have been changed
Purchasing a New or Used Clean Vehicle IN 2024? Find more tax credit info here:
https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
A Dealership-only Used EV Tax Credit has been introduced with lesser requirements than the New EV credits:
https://www.irs.gov/credits-deductions/used-clean-vehicle-credit
One Pager Checklist for NEW EV Federal Credits: Publication 5866 (10-2023) (irs.gov)
One Pager Checklist for USED EV Federal Credits: Publication 5866a (01-2024) (irs.gov)
Cash on the hood is now available for your New or Used EV purchase at a dealership.
More info on the specifics here: Publication 5899 (12-2023) (irs.gov)
Looking for information on vehicle eligibility? Find out more here or check out the PDF below: https://fueleconomy.gov/feg/tax2023.shtml
Additional links to EV purchases are posted in the Useful Links section below.
Have a resource you would like us to consider adding? Send it to us at info@DriveElectricColumbus.com
