If you buy a qualified used electric vehicle or fuel cell vehicle from a licensed dealer for $25,000 or less, you may be eligible for a used clean vehicle tax credit. The credit equals 30% of the sales price, up to a maximum of $4,000. If you purchased your vehicle before 2023, you don’t qualify.

To qualify for the tax credit, the vehicle must be purchased for your own use and not for resale.

As the buyer, you can’t:

  • Be the original owner of the vehicle.
  • Be claimed as a dependent on another person’s tax return.
  • Have claimed another used clean vehicle credit in the three years before the purchase date.

Income limitations also apply. Some of the qualifications for the vehicle include:

  • A battery capacity of at least 7 kilowatt hours.
  • A gross vehicle weight rating of less than 14,000 pounds.
  • Sales price before credit of $25,000 or less.
  • The dealer must report the sale – with the buyer’s tax identification number – to the IRS.

To learn more about this credit and which clean vehicles qualify for it, visit IRS.gov/cleanvehicles.