Can I Claim the Electric Vehicle Tax Credit?

Yes — new electric vehicles may qualify for the Clean Vehicle Credit of up to $7,500, and used EVs may qualify for up to $4,000. Income limits apply: for new EVs, your MAGI must be under $150,000 (single) or $300,000 (MFJ); for used EVs, $75,000 (single) or $150,000 (MFJ). Not all EVs qualify — the vehicle must meet North American assembly requirements and battery component sourcing rules under the Inflation Reduction Act. Starting in 2024, you can transfer the credit to the dealer at point of sale to reduce your purchase price directly. Check the IRS's list of qualifying vehicles before purchasing.