Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After

Who Qualifies

The credit is available to individuals and their businesses.

To qualify, you must:

• Buy it for your own use, not for resale
• Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

• $300,000 for married couples filing jointly
• $225,000 for heads of households
• $150,000 for all other filers

You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in one of the two years, you can claim the credit. Your modified AGI is the amount from line 11 of your Form 1040 plus:

• Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income.
• Any amount excluded from gross income because it was received from sources in Puerto Rico or American Samoa.

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.

Qualified Vehicles

General Requirements

To qualify, a vehicle must:

• Have a battery capacity of at least 7 kilowatt hours
• Have a gross vehicle weight rating of less than 14,000 pounds
• Be made by a qualified manufacturer. See IRS's index of qualified manufacturers and vehicles.
  Note that fuel cell vehicles do not need to be made by a qualified manufacturer to be eligible. See Rev. Proc. 2022-42 for more detailed guidance.

Vehicles on this list will meet the above three requirements.

The sale qualifies only if:

• You buy the vehicle new. New means it hasn't previously been purchased, registered, titled, or used for any purpose.
• The seller reports required information to you at the time of sale and to the IRS. Sellers are required to report your name and taxpayer identification number to the IRS for you to be eligible to claim the credit.

Final Assembly Requirement

The vehicle must undergo final assembly in North America.

You can find your vehicle's weight, battery capacity, final assembly location (listed as “final assembly point”) and VIN on the vehicle's window sticker.

To check online if a specific vehicle meets the requirements for final assembly location, go to the Department of Energy's page on Electric Vehicles with Final Assembly in North America and use the VIN Decoder tool under "Specific Assembly Location Based on VIN."

MSRP Requirement

The vehicle's manufacturer suggested retail price (MSRP) can't exceed:

• $80,000 for vans, sport utility vehicles and pickup trucks
• $55,000 for other vehicles

The MSRP is the base retail price suggested by the manufacturer, plus the retail price suggested by the manufacturer for each accessory or item of optional equipment physically attached to the vehicle at the time of delivery to the dealer. It does not include destination charges, the cost of optional items added by the dealer, or taxes and fees. In addition, manufacturer/dealer incentives and trade-ins do not affect MSRP.

To confirm whether a vehicle is a van, sport utility vehicle, pickup truck or other, see IRS's qualified vehicles and manufacturers.

To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return. You will need to provide your vehicle's VIN.

Internal Revenue Service (IRS)

• Frequently Asked Questions About the New, Previously-Owned and Qualified Commercial Clean Vehicles Credit
  • Topic A — Frequently Asked Questions About the Eligibility Rules for the New Clean Vehicle Credit
  • Topic B — Frequently Asked Questions About Income and Price Limitations for the New Clean Vehicle Credit
  • Topic C — Frequently Asked Questions About When The New Requirements Apply To The New Clean Vehicle Credit
• Credits for New Clean Vehicles Purchased in 2023 or After
• Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After
• Electric Vehicles with Final Assembly in North America