{"id":7466,"date":"2023-12-30T08:13:03","date_gmt":"2023-12-30T08:13:03","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=7466"},"modified":"2023-12-30T08:13:13","modified_gmt":"2023-12-30T08:13:13","slug":"ev-car-tax-credit","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/ev-car-tax-credit\/","title":{"rendered":"How to get $7,500 Instant EV Car Tax Credit from 2024?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-1024x576.webp 1024w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-300x169.webp 300w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-768x432.webp 768w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-1536x864.webp 1536w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-150x84.webp 150w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-750x422.webp 750w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-1140x641.webp 1140w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit.webp 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-1024x576.png\" height=\"576\" width=\"1024\" srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-1024x576.png 1024w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-300x169.png 300w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-768x432.png 768w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-1536x864.png 1536w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-150x84.png 150w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-750x422.png 750w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit-1140x641.png 1140w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/12\/ev-credit.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" class=\"wp-image-7467 sp-no-webp\" alt=\"ev car tax credit\" decoding=\"async\" loading=\"lazy\"  > <\/picture><\/figure>\n\n\n\n<p>You read it correctly! Buying an electric car in 2024. can indeed provide the federal EV car <a href=\"https:\/\/www.irstaxapp.com\/childcare-tax-credit\/\">tax credit<\/a> for electric vehicles as a discount of the $7,500 credit directly from the dealer. This is part of huge effort of Biden government to popularise <a href=\"https:\/\/www.irstaxapp.com\/solar-tax-credit-2023\/\">solar energy<\/a> and non fossil fuel alternatives .So, here are 7 points you must note for this instant clean energy vehicle credit.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6629143c633c7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6629143c633c7\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.irstaxapp.com\/ev-car-tax-credit\/#1_Instant_Credits_at_the_Time_of_Purchase\" title=\"1. Instant Credits at the Time of Purchase.\">1. Instant Credits at the Time of Purchase.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.irstaxapp.com\/ev-car-tax-credit\/#2_Who_is_Eligible_for_Instant_Rebate_in_2024\" title=\"2. Who is Eligible for Instant Rebate in 2024?\u00a0\">2. Who is Eligible for Instant Rebate in 2024?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.irstaxapp.com\/ev-car-tax-credit\/#3_What_if_Your_Income_Crosses_the_Limit_in_2024\" title=\"3. What if Your Income Crosses the Limit in 2024?\">3. What if Your Income Crosses the Limit in 2024?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.irstaxapp.com\/ev-car-tax-credit\/#4_Fewer_EV_Models_Qualify_in_2024\" title=\"4. Fewer EV Models Qualify in 2024\">4. Fewer EV Models Qualify in 2024<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.irstaxapp.com\/ev-car-tax-credit\/#5_How_do_you_check_if_a_vehicle_is_eligible_for_7500\" title=\"5. How do you check if a vehicle is eligible for $7500?\">5. How do you check if a vehicle is eligible for $7500?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.irstaxapp.com\/ev-car-tax-credit\/#7_May_Get_Good_Discount_on_Leasing_a_Car_too\" title=\"7. May Get Good Discount on Leasing a Car too !\">7. May Get Good Discount on Leasing a Car too !<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.irstaxapp.com\/ev-car-tax-credit\/#8_Credit_for_buying_a_used_Electric_Vehicle\" title=\"8. Credit for buying a used Electric Vehicle\">8. Credit for buying a used Electric Vehicle<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.irstaxapp.com\/ev-car-tax-credit\/#9_Hefty_EV_Car_Tax_Credit_for_a_Business_Use\" title=\"9. Hefty EV Car Tax Credit for a Business Use\">9. Hefty EV Car Tax Credit for a Business Use<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Instant_Credits_at_the_Time_of_Purchase\"><\/span>1. Instant Credits at the Time of Purchase.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If the car is eligible for this credit, you&#8217;re also eligible for a $7,500 credit. In that case, the dealer will complete the documentation, provide instant credits, and only charge the purchase amount. The dealer will file the form and claim $7,500 from the IRS.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Who_is_Eligible_for_Instant_Rebate_in_2024\"><\/span>2. Who is Eligible for Instant Rebate in 2024?\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You are eligible for clean vehicle credit only if :<\/p>\n\n\n\n<ol>\n<li>Customers must buy it for their use, not for resale<\/li>\n\n\n\n<li>Use the vehicle primarily in the U.S.<\/li>\n\n\n\n<li>Your &#8220;<a href=\"https:\/\/www.irstaxapp.com\/how-to-do-taxes-i-mean-how-to-compute-taxable-income-tax\/\">modified adjusted gross income<\/a>&#8221; in year 2024 is not more than :<\/li>\n<\/ol>\n\n\n\n<ul>\n<li>$300,000 for married couples filing jointly<\/li>\n\n\n\n<li>$225,000 for heads of households<\/li>\n\n\n\n<li>$150,000 for all other filers<\/li>\n<\/ul>\n\n\n\n<p>You can claim the discount or credit even based on the previous year, 2023 , if the MAGI is less than the cap above. But remember, MAGI should not be crossing in 2024.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_What_if_Your_Income_Crosses_the_Limit_in_2024\"><\/span>3. What if Your Income Crosses the Limit in 2024?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you met the income cap requirement at the time of purchase, but subsequently, your earnings went up during the year to the extent that you crossed over the cap in 2024, then you must pay back that $7,500 to the IRS when you file your 2024 taxes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Fewer_EV_Models_Qualify_in_2024\"><\/span>4. Fewer EV Models Qualify in 2024<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The requirements imposed by the government get stricter for eligible vehicles. The $7,500 tax credit is comprised of two separate credits, each worth $3,750. Vehicles can qualify for both, one or neither.<\/p>\n\n\n\n<p>Fully electric vehicles and plug-in hybrid vehicles can both qualify for the tax credit; they must meet these two requirements:<\/p>\n\n\n\n<ul>\n<li>Be assembled in North America<\/li>\n\n\n\n<li>Have a sticker price (MSRP) of less than $55,000 for cars and $80,000 for SUVs and trucks<\/li>\n\n\n\n<li>vehicle batteries must fulfil the materials sourcing requirements.<\/li>\n<\/ul>\n\n\n\n<p>As a buyer, you do not have to be bothered because the car dealer will ascertain if the vehicle they sell satisfies the clean vehicle tax credit requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_How_do_you_check_if_a_vehicle_is_eligible_for_7500\"><\/span>5. How do you check if a vehicle is eligible for $7500?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The car manufacturer&#8217;s website may tell you about the eligibility of the car or vehicle&#8217;s eligibility. From a report, only ten cars are eligible for full credit $7,500 credits are :<\/p>\n\n\n\n<ol>\n<li><strong>Chevrolet Bolt EV &#8211; $26,500<\/strong><\/li>\n\n\n\n<li><strong>Chevrolet Equinox EV &#8211; $48,995<\/strong><\/li>\n\n\n\n<li><strong>Ford F-150 Lightning &#8211; $49,995<\/strong><\/li>\n\n\n\n<li><strong>Tesla Model 3 Performance &#8211; $50,990<\/strong><\/li>\n\n\n\n<li><strong>Chevrolet Silverado &#8211; $51,895<\/strong><\/li>\n\n\n\n<li><strong>Tesla Model Y Performance &#8211; $52,490<\/strong><\/li>\n\n\n\n<li><strong>Chrysler Pacifica PHEV &#8211; $53,425<\/strong><\/li>\n\n\n\n<li><strong>Chevrolet Blazer EV &#8211; $60,215<\/strong><\/li>\n\n\n\n<li><strong>Cadillac LYRIQ &#8211; $58,590<\/strong><\/li>\n\n\n\n<li><strong>Tesla Model X &#8211; $79,990<\/strong><\/li>\n<\/ol>\n\n\n\n<p>You can visit the website<strong>.\u00a0<\/strong><a href=\"https:\/\/fueleconomy.gov\/feg\/tax2023.shtml#requirements\" target=\"_blank\" rel=\"noreferrer noopener\">fueleconomy.gov<\/a>\u00a0for a list of eligible vehicles<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"jeg_video_container jeg_video_content\"><iframe loading=\"lazy\" title=\"$7500  ev car tax credit on these cars in 2024 #short\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/HBHxQfj7FDU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p><strong>6. It no longer matters how much you owe in taxes<\/strong><\/p>\n\n\n\n<p>You don&#8217;t need any tax liability to claim this clean energy vehicle credit because these are now being given as discounts at the time of purchase. The dealer must be convinced about your qualifications. This EV car tax credit is going to help middle-class families a lot.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_May_Get_Good_Discount_on_Leasing_a_Car_too\"><\/span>7. May Get Good Discount on Leasing a Car too !<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you want to lease a vehicle, the credit goes to the company leasing out the car \u2014 not you. The leasing companies are also not required to pass the savings on to consumers. However, many leasing companies may offer discounts based on their tax credits as a marketing exercise. Since you are not getting the tax credit directly, you have no restrictions like maximum AGI.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Credit_for_buying_a_used_Electric_Vehicle\"><\/span>8. Credit for buying a used Electric Vehicle<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There is good news if you want to buy a used electric vehicle. You can also get EV car tax credit of 30% of the vehicle sales price, max $4,000, for second-hand EV cars. The certain limitations, effective 2024, are :<\/p>\n\n\n\n<ol>\n<li>EV Model year should be 2022 or earlier<\/li>\n\n\n\n<li>Adjusted Gross Income cap is fixed at $75,000 for a single person and $150,000 for a household.<\/li>\n\n\n\n<li>Vehicles must cost less than $25,000.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_Hefty_EV_Car_Tax_Credit_for_a_Business_Use\"><\/span>9. Hefty EV Car Tax Credit for a Business Use<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A business person can claim credit for buying EV vehicles for their business as follows:<\/p>\n\n\n\n<ol>\n<li>Up to $7,500 for a light vehicle and&nbsp;<\/li>\n\n\n\n<li>Up to $40,000 for a larger vehicle, like a delivery truck.<\/li>\n<\/ol>\n\n\n\n<p>There are far fewer restrictions on the commercial tax credit, and the EV credit amount depends on the EV vehicle&#8217;s purchase price.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>You read it correctly! Buying an electric car in 2024. can indeed provide the federal EV car tax credit for electric vehicles as a discount of the $7,500 credit directly from the dealer. This is part of huge effort of Biden government to popularise solar energy and non fossil fuel alternatives .So, here are 7 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7467,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[54],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/7466"}],"collection":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/comments?post=7466"}],"version-history":[{"count":4,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/7466\/revisions"}],"predecessor-version":[{"id":7472,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/7466\/revisions\/7472"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media\/7467"}],"wp:attachment":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media?parent=7466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/categories?post=7466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/tags?post=7466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}