Tax Credit for Electric Cars: Not All Electric Vehicles Qualify
The EV Tax Credit 2023 Explained: Now is the Time to Buy an Electric Car
Vehicles purchased in 2022 and earlier - manufacturers list: https://www.irs.gov/credits-deduction...
Check to see if your vehicle is eligible for the EV tax credit:
https://fueleconomy.gov/feg/tax2023.s...
Check to see if your pre-owned electric vehicle qualifies for the EV credit:
https://www.fueleconomy.gov/feg/taxus...
Electric vehicles with final assembly in North America. Check the VIN on your new vehicle to see if it qualifies for the EV credit:
https://afdc.energy.gov/laws/electric...
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#electricvehicles
00:00 - EV Tax Credit 2023
00:50 - Used electric vehicles
02:45 - New electric vehicles
04:47 - Commercial electric vehicles
07:05 - Future changes in EV tax credit
08:04 - Upfront discount/credit starting in 2024
TRANSCRIPT:
If you've ever wanted to buy an electric car, there is no better time to buy one than right now. In a moment I am going to cover why it is a good time to buy; how much you can receive as a tax credit; who is eligible to take the credit; and when you can apply for the credit.
The electric vehicle tax credit has been revamped to incentivize you to go electric. The EV credit is meant to help you save money on that super awesome electric car you've always wanted. If you've been on the fence about whether you should switch to electric, well, this is good news. The Inflation Reduction Act of 2022 has changed the federal tax credits for electric and fuel-cell vehicles. We're talking about up to $7,500
in tax credits if you buy a new electric vehicle and up to $4,000
if you buy a used one.
Just like individuals, business and tax-exempt organizations can qualify for a clean vehicle tax credit of up to $7,500 for commercial vehicles under 14,000 pounds. But wait, there's more! Your business or tax-exempt organization could qualify for up to $40,000 for all other clean vehicles.
The EV credit will be the lesser of two things: either 15% of your basis in the vehicle or the incremental cost of the vehicle, up to the $40,000.
If the vehicle is not powered by gas or diesel at all, the EV credit will be 30% of your basis in the vehicle. So, the greener you go, the more you save.
So, if you're thinking long-term, these evolving requirements could impact your ability to take the EV tax credit. But, we also have some good news starting in 2024. You won’t even have to wait until tax time to benefit from EV credits? That's right, the game is changing.
Starting in 2024, you'll have the option to take the EV tax credit as an immediate discount when you purchase your new electric vehicle.
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