EV Credit

What is the Used Electric Car Tax Credit

According to The Internal Revenue Service (IRS) the Clean Vehicle tax credit for used vehicles as a credit that equals 30% of the sale price up to a maximum credit of $4,000. Besides fully electric vehicles, plug-in hybrids, and fuel cell vehicles in California may qualify. The sale must be less than $25,000.

Other restrictions and how to qualify for the used EV tax credit

• To qualify, used cars must be at least two model years old.
• The vehicle also must be purchased at a dealership.
• The rebate may be instant if the dealership offers the option.
• The EV only qualifies for a tax incentive once in its lifetime.
• Used buyers can only qualify for one EV tax credit every three years.
• Individuals must meet income requirements (see below) and not be claimed as a dependent on any other person's tax form.
• The used electric vehicle must have a gross vehicle weight rating (GVWR) of less than 14,000 pounds.

Note that if you purchase a qualifying used electric vehicle, make sure the dealership provides a copy of the "time of sale" document because it confirms they submitted the paperwork on the vehicle to the IRS. Not every version of model will necessarily qualify