Can you get an immediate tax credit on a used electric car?
The newest revisions to the tax law have made it so that used electric cars may now qualify for up to a $4,000 INSTANT TAX CREDIT!!
Used EV tax credit limitations and rules include:
Age. A vehicle must be at least two years older than the current calendar year when purchased. This means that a used EV bought in 2024 must be no newer than the 2022 model year.
Price. The qualifying vehicle must have a sale price of $25,000 or less.
Income. Certain income limitations may apply to the used EV tax credit depending on your filing status. Please see our dealership or an accountant for more details
Here are some frequently asked questions about the Previously Owned Clean Vehicles Credit (taken for the IRS website)
1. What information do I need to provide to the dealership?
Date of the transfer election.
Your taxpayer identification number.
A photocopy of your valid, government-issued photo identification document.
Other information may apply, please visit dealer or IRS website
2. How many transfer elections can I make in a year?
You can make no more than two elections to transfer a clean vehicle credit each tax year. Such elections could be for two Clean Vehicle Credits or one Clean Vehicle Credit and one Previously Owned Clean Vehicle Credit, but cannot be for two Previously Owned Clean Vehicle Credits. Accordingly, spouses may each transfer no more than two Clean Vehicle Credits each tax year.
3. What benefits may a purchaser get in exchange for transferring a Clean Vehicle Tax Credit to a registered dealer?
A dealer can provide a purchasing taxpayer with a financial benefit in cash or in the form of a partial payment or down payment for the purchase of the vehicle. The taxpayer benefits by receiving an immediate financial benefit at the time of sale, rather than having to wait to file a tax return and claim the credit.
4. Q13. Can I change my mind about whether to transfer a tax credit after a sale has been finalized?
No. The transfer election is final.
5. Can I transfer a credit if I will use the vehicle for both personal and business use?
You can transfer the New Clean Vehicle Credit only if you intend to use the vehicle predominantly for personal use.
Please call, stop by, or message us for any questions you have about the Previously Owned Clean Vehicle Credit and keep in mind that not all dealerships offer the immediate tax credit. At Huff Auto Group we are able to offer you an immediate tax credit on your pre-owned EV and we're ready to assist you throughout your whole process.
