Section 13402 of The Inflation Reduction Act of 2022 (H.R. 5376) established a tax credit for previously-owned clean vehicles purchased by a taxpayer after December 31, 2022. The credit is worth the lesser of $4,000 or 30% of the sale price. The model year of the vehicle must be at least two years earlier than the calendar year in which the taxpayer acquires it, and the vehicle must have a gross vehicle weight of less than 14,000 pounds. The transaction must take place through a dealer and carry a sale price of $25,000 or less, and be the first transfer since the establishment of this tax credit. The credit is not available for taxpayers with a modified adjusted gross income exceeding: $150,000 for a joint filing, $112,500 for a head of household, or $75,000 for a single filing. Subject to additional regulations or other guidance the IRS may issue, for vehicles purchased after December 31, 2023, the purchaser may elect to transfer the tax credit to the dealer from which the vehicle is being purchased.
|Incentive Type:||Personal Tax Credit|
|Eligible Renewable/Other Technologies:||
|Incentive Amount:||Lesser of 30% of cost or $4,000|
|Equipment Requirements:||Vehicle must purchased through a dealer, have a gross vehicle weight of less than 14,000 pounds, be at least 2 years old, and have a sales price of no more than $25,000|
|Technologies:||Passenger Electric Vehicles|
|Sectors:||Residential, Multifamily Residential, Low Income Residential|
|Parameters:||The incentive is 30.00 % of cost, The incentive has a minimum of $4000.00|
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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