What Is the Electric Vehicle Tax Credit?

The Clean Vehicle Credit gives you up to $7,500 for purchasing a new qualifying electric vehicle and up to $4,000 for a used one. The vehicle and your income must both meet specific requirements — there are MSRP caps and income limits. Starting in 2024, you can transfer the credit to the dealer at the point of sale (effectively a discount) rather than waiting to claim it on your return. The vehicle must be assembled in North America to qualify. Check the IRS website for the current list of qualifying models.