Federal Tax Credits for Electric Vehicles

All-electric, plug-in hybrid, and fuel cell electric vehicles purchased new in 2023 or after may be eligible for a federal income tax credit of up to $7,500.

The availability of the credit will depend on several factors, including the vehicle’s MSRP, its final assembly location, battery component and/or critical minerals sourcing, and your modified adjusted gross income (AGI).

Qualified vehicles purchased before 2023 may be eligible for a similar tax credit of up to $7,500. Pre-owned vehicles purchased in 2023 or after are eligible for a tax credit of up to $4,000. State and/or local tax incentives may also apply.

Learn more about requirements and reach out to your accounting professional if you have any questions.

Source: www.fueleconomy.gov