Save Up to $4,000 with the Used EV Tax Credit

Thinking about buying a used electric or hybrid vehicle? You could qualify for a federal tax credit worth up to $4,000 with the Used Clean Vehicle Tax Credit.

The Used Clean Vehicle Tax Credit is a federal incentive that gives you up to $4,000 (or 30% of the sale price) back at tax time—just for choosing an eligible used EV or plug-in hybrid vehicle. It’s a smart way to save money while driving electric.

This incentive makes going green even more affordable—whether you’re looking at a used electric, plug-in hybrid, or hydrogen fuel cell vehicle. It’s a great way to save money while choosing a cleaner, more efficient ride.

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Who Qualifies for the Used Clean Vehicle Tax Credit?

To qualify for the Clean Vehicle Tax Credit, you must meet specific eligibility requirements:

1. Purchase an Eligible Vehicle:

The vehicle must be on the list of eligible makes and models, which includes various electric, plug-in hybrid, and hydrogen fuel cell vehicles that are under $25,000 or less. Vehicle model year must be at least 2 years earlier than the calendar year when you purchase it.

2. Income Requirements:

Buyers of used clean vehicles must have a modified adjusted gross income (MAGI) of less than $150,000 for joint filers, $112,000 for heads of household and $75,000 for all other filers.

3. Personal Qualifications:

The credit is only available to the person who bought the vehicle for use and not sale, not the original owner, not a dependent on another person’s tax return, and not have claimed another used clean vehicle credit in the 3 years before the purchase date.

How to Claim the Used Clean Vehicle Tax Credit

To claim the Clean Vehicle Tax Credit, you must:

1. Purchase an Eligible Vehicle:

Eligible vehicles must have a battery capacity of at least 7 kw hours, have a gross vehicle weight rating of less than 14,000 lbs., be made by a qualified manufacturer, undergo final assembly in North America and meet critical mineral and battery component requirements. Ensure that your vehicle is eligible by checking the IRS list of qualifying vehicles.

2. Obtain a Manufacturer’s Certification:

The manufacturer must certify that the vehicle meets the requirements for the credit.

3. File IRS Form 8936:

Complete and submit IRS Form 8936 with your federal tax return to claim the credit. For used vehicles, you may need additional documentation, such as the vehicle identification number (VIN).

Why Choose a Used Clean Vehicle?

Switching to a used clean vehicle not only helps reduce your carbon footprint but also offers long-term cost savings. Clean vehicles typically have lower maintenance and fuel costs compared to traditional gasoline-powered cars. Plus, with federal incentives like the Used Clean Vehicle Tax Credit, you can lower your initial investment and enjoy significant tax savings.