Want to Buy a New or Used Electric Vehicle? New tax credit rules apply and are generally effective on purchases after 1/1/23:

a. The max credit is $7,500 per vehicle ($3,750 if the vehicle complies with domestic sourcing requirements for critical materials used in batteries plus another $3,750 if the vehicle satisfies domestic content requirements for battery components) – no vehicles currently meet the critical materials test…so the max credit currently is $3,750.
b. The final vehicle assembly always has to occur in the USA.
c. You cannot claim the credit if your personal income is more than $300K if Married Filing Joint ($150K for single-filers).
d. The MSRP cannot be more than $80K for vans, trucks, or SUVs or $55K for any other vehicles.
e. You can get a credit of the lesser of $4K or 30% of the purchase price for your used electric vehicle which costs under $25K and is at least two years old. To get this used vehicle credit, you have to purchase the used vehicle from a dealer and your income has to be less than $150K Married Filing Joint or $75K as a single-filer.
f. The above rules apply if the vehicle is for personal-use. If the vehicle is for business-use, then the rules are more liberal.
g. Before you buy an EV, give us a call so that we can walk you through the rules and opportunities.