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.