Last Updated August 26, 2022
Program Overview
Category:
Financial Incentive
State:
Federal
Incentive Type:
Personal Tax Credit
Administrator:
N/A
Start Date:
01/01/2023
Expiration Date:
12/31/2032
Web Site:
N/A
Applicable Sectors:
Residential, Multifamily Residential, Low Income Residential
Eligible Renewable/Other Technologies:
Passenger Electric Vehicles
Summary
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.