Going Electric Tax Credit. IRS incentives New Clean Vehicle Credit

Thinking about buying a new or used electric car or truck? Below are some of the basics on how to qualify for this credit.

Electric Car

For full details of this electric tax credit, please visit IRS.gov

· Final Assembly took place in North America (USA).

· Battery capacity of 7 kilowatt hours or more. Must have a external source of electricity.

· Gross weight of 14,000 pounds

· Must have 4 wheels used for public, private, highways.

· Must be on the list of qualified manufacturers.

· In service date January 1st 2023.

· Where can you go to see what manufacturers are on the approval list? FuelEconomy.gov

· How do I know if the final assembly took place in North America? You can find this also on the website; however, the local dealer will have this information as well. Final assembly also includes Puerto Rico, Canada, and Mexico.

· The adjusted gross income may not exceed the following:

$300k for married couples

$225k for head of households

$150k for single and other filers

· Can I qualify for a credit if I buy a used electric car/truck?

YES! If you purchase from a licensed dealership and it was less than $25,000.00 you may be eligible for a used clean vehicle tax credit. The credit equals 30% of the sale price up to a maximum credit of $4,000.

The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years. Purchases made before 2023 don't qualify.

Making use of government incentives during tax time is smart! There are many credits available if you also upgrade appliances in a home or business.

Tax season begins in a few short months, If you need help filing past tax returns or 2023 taxes we are open for business and would love to assist you! Reach out today. 904-257-3145.