Electric vehicles (EVs) are potentially eligible for a new tax credit to be introduced by the Internal Revenue Service (IRS) in August 2022. EV or plug-in hybrid vehicle buyers can receive a credit of $2,500 to $7,500 after December 31st, 2009. For this credit, qualified EVs are defined as “Plug-in Electric Drive Motor Vehicles” such as passenger vehicles and light trucks. These amounts are summarized below.
|$2,500||Own an EV||Base credit|
|$417||5 KWh capacity battery||Minimum of 5 kilowatt hour capacity battery|
|$417||Over 5 KWh capacity battery||Additional credit added for every kilowatt over 5 hour capacity|
|$7,500||Own an EV||Credit limit|
August 2022 also marked the passing of the Inflation Reduction Act, which further defined which vehicles were eligible for the credit. North American consumers and electric vehicle manufacturers will benefit from the act’s new provisions. Previously, manufacturers were limited to selling 200,000 EVs that qualified for the tax credit. New regulations, like those below, were introduced by the new act as a result of removing this limitation.
More Qualifications For EV Tax Credit
Changes Scheduled to Begin in 2024
It will vary from state to state whether EVs qualify for additional credits. Find out if there are more opportunities available by visiting the website of your state’s government! You can find out which specific vehicles qualify for the IRS EV Tax Credit by clicking here.