Earth Day Climate Action Guide - Electric Cars
Looking into getting a new car? The Inflation Reduction Act has federal incentives available that could help you save money and invest in clean energy.
NEW CLEAN VEHICLES
WHAT IS IT? Vehicles that are powered by electricity either through a rechargeable battery or by hydrogen fuel cells.
THE INCENTIVE: Tax credit for purchasing qualified new electric or fuel cell vehicle.
WHO/WHAT QUALIFIES? Taxpayers meeting income requirements who purchase a qualifying vehicle. Click here to find qualifying vehicles and income restrictions.
HOW MUCH MONEY? Up to $7,500.
Non refundable and not transferable to future tax years.
HOW TO CLAIM: Work with your car dealership to obtain a time-of-sale report. Dealer is only responsible for car eligibility. You must verify personal eligibility. Apply credit at time of sale with dealer starting in 2024 or apply it when you file your taxes. Either way you must submit Tax Form 8936.
USED CLEAN VEHICLES
WHAT IS IT? Previously owned electric vehicles powered by a rechargeable battery or hydrogen.
THE INCENTIVE: Tax credit for purchasing qualified used electric or fuel cell vehicle.
WHO/WHAT QUALIFIES? Taxpayers meeting income requirements who purchase a qualifying vehicle for $25,000 or less. Click here to see qualifying vehicles and income restrictions.
HOW MUCH MONEY? The lesser of $4,000 or 30% of price.
Non refundable and not transferable to future tax years.
HOW TO CLAIM: Work with your car dealership to obtain a time-of-sale report. Dealer is only responsible for car eligibility. You must verify personal eligibility. Apply credit at time of sale with dealer starting in 2024 or apply it when you file your taxes. Either way you must submit Tax Form 8936.
CHARGING STATION & REFUELING PROPERTY
WHAT IS IT? Power supply device for recharging plug-in electric vehicles or property used to store or dispense clean-burning fuel.
THE INCENTIVE: Tax credit for the installation of qualified vehicle refueling and recharging property.
WHO/WHAT QUALIFIES? Individuals that place qualified refueling property into service during the tax year, located in either low income or non urban census tracts. Click here to see if your area qualifies.
HOW MUCH MONEY? 30% of the total cost, up to $1,000.
HOW TO CLAIM: Click here for Tax Form 8911.
Looking for more local incentives? State and local municipalities offer more clean energy vehicle credits. See what incentives are available in your area!
*The various pieces of legislation like the Inflation Reduction Act are being rolled out over the coming months and how authorities are implementing these programs is an evolving process so stay tuned as information is updated on this website.