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If you’ve been eyeing the market for an electric vehicle, this year is as good a time as any. That’s because the Internal Revenue Service (IRS) is giving $7,500 tax credits for those who buy or lease new electric vehicles and a tax credit of up to $4,000 for used electric cars.
The clean vehicle tax credit is an effort to incentivize consumers to buy more electric vehicles; however, not all of them are eligible for the credit, and there has been some uncertainty about which cars will qualify since the Inflation Reduction Act (IRA) of 2022 included last-minute changes. But the IRS has recently released a list of vehicles they say are eligible for the credit.
New electric vehicles eligible for a tax credit
Here are the new vehicles that are eligible for the full $7,500 credit:
Model Y Long Range (7-seat Model)
ID.4 Pro/Pro S/AWD Pro/AWD Pro S
For information on qualifying for a tax credit for a used electric vehicle, find more details here.
Who qualifies for the clean vehicle tax credit?
To qualify for the tax credit, you have to purchase the vehicle for yourself (not for resale) and use it in the U.S. Apart from that, your adjusted gross income may not exceed $300,000 for married couples filing jointly, $225,000 for heads of households, and $150,000 for all other filers.
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