Buyer income limits are based on modified adjusted gross income and tax filing status.Other qualifying new vehicles, like sedans, have an MSRP price cap of $55,000.New SUVs, vans and pickup trucks have an MSRP price cap of $80,000.Starting on April 18, 2023, increasing percentages of battery minerals and components must be sourced from the U.S.Qualifying vehicles must be assembled in North America.There are now significant eligibility limits on both the price of the vehicle and the income of the buyer if either figure is too high, you will not qualify for the tax credit. Used EVs or plug-in hybrids can be eligible for a tax credit of up to $4,000 provided they meet certain requirements. The other $3,750 is dependent on the percentage of battery components manufactured or assembled in the same countries. or any country that has a free-trade agreement with the U.S. You get $3,750 if a certain percentage of critical battery minerals were sourced from the U.S. After that, the $7,500 electric car tax credit has been split into two parts, each with different requirements. The biggest change is the requirement of the final assembly of eligible vehicles that must occur in North America. The rules are more complicated than before, but we break them all down in this article. If you're shopping for an electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV) in 2023, it's important to be aware that the Inflation Reduction Act of August 2022 brought major changes to federal EV tax credits for both new and now used vehicles.

2019 plug in hybrid vehicle taxes