Fed Incentives: Inflation Reduction Act

Used Electric Vehicle Tax Credit

Under the Inflation Reduction Act, the following federal tax credit is applied for used battery-electric vehicles:

** 30% of purchase price up, to $4,000 credit **

Income Qualifications

To apply, the taxpayer must meet the modified adjusted gross income (MAGI) requirements:

Single filers: $75,000 max
Head of household: $112,500 max
Married, filing jointly: $150,000 max
Married, filing separately: $75,000

Other Requirements

And these additional qualifications apply to be eligible:

· Purchase price of car must be $25,000 or less.
· Car model must be at least 2 years old.
· Only qualifies for the first sale transfer of a vehicle.
· Credit can only be claimed once every three years per taxpayer.