It Just Got a Whole Lot Easier to Claim the Federal EV Tax Credit

Qualified buyers no longer need to wait until filing their taxes to apply the credit to the purchase price of their new or used EV.

By Greg Fink

No one’s forcing you to buy an electric vehicle, but the government is certainly incentivizing consumers to do so. Starting January 1, 2024, buyers of eligible battery-electric and plug-in-hybrid vehicles can transfer the federal tax credit to participating dealers at purchase. Previously, EV and PHEV buyers could only claim the credit when filing their income taxes. Now consumers can cut the purchase price of a new or used EV or PHEV by the equivalent credit for which a vehicle qualifies. That means as much as a $7500 discount on new EVs and PHEVs and up to $4000 (a max of 30 percent of the sale price) on used ones. Taking advantage of this on the consumer’s end simply requires that buyers fall below the maximum modified adjusted gross income (AGI) limits outlined…

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Car and Driver (Digital) - 1 Issue, January 2024

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