Get the Most Out of the 2023 EV Tax Credit
The landscape of the electric vehicle (EV) and Plug-in Hybrid (PHEV) market is rapidly evolving, bringing with it a slew of incentives to spur their adoption. As of 2023, the federal tax credit for EVs and PHEVs offers a substantial reduction in purchase costs. However, it’s crucial to be aware of the eligibility criteria and potential restrictions.
Buying a New EV or PHEV
To avail the full tax credit of $7,500 when purchasing a new EV or PHEV, your selected vehicle must meet specific standards:
North American Assembly
The vehicle’s final assembly should be in North America.
Battery Mineral Sourcing
A significant portion of the essential battery minerals in the EV must come from the U.S. or a nation with a U.S. free-trade agreement.
Battery Component Manufacturing
A certain percentage of the EV’s battery components should be produced or assembled in North America, the U.S., or a nation with a U.S. free-trade agreement.
MSRP Limits
The manufacturer’s suggested retail price (MSRP) should not surpass $55,000 for cars and $80,000 for SUVs, trucks, and vans.
Buyer’s Income Limits
Your income should be within a specific range, typically between $150,000 and $300,000, based on your tax filing status.
Purchasing a Used EV or PHEV
Acquiring a used EV or PHEV is a simpler process but offers a reduced tax credit. The maximum credit for used vehicles is $4,000, although the credit decreases for less expensive used EVs.
Vehicle Age
The EV should be a minimum of two years old.
Purchase Price Limit
The purchase price of the EV should not go beyond $25,000.
Purchase Source
The EV must be bought from a licensed dealer, not from a private seller.
Buyer’s Income Limits
Your income should fall within a narrower range, usually between $75,000 and $150,000, based on your tax filing status.
Conclusion
The federal tax credit for EVs and PHEVs serves as a pivotal incentive to boost their adoption. While navigating the eligibility criteria and restrictions might seem complex, the potential savings are considerable. If you’re considering purchasing a new EV, our sales team is here to assist you in evaluating your options and ensuring your chosen vehicle meets all criteria, maximizing your savings from this attractive incentive. Reach out to our team today to discover how you can capitalize on these savings!