The clean vehicle tax credit is a federal incentive that can be used to reduce the cost of purchasing a new or used electric vehicle (EV) or fuel cell electric vehicle (FCV). The credit is available to individuals and businesses who purchase a qualifying vehicle for their own use.
The amount of the credit depends on the type and battery capacity of the vehicle. New EVs and FCVs purchased in 2023 and after, the credit can be up to $7,500. For used EVs and FCVs purchased in 2023 and after, the credit is up to $4,000, or 30% of the purchase price, whichever is less.
The clean vehicle tax credit is designed to encourage the purchase of EVs and FCVs and to help reduce greenhouse gas emissions. It is a valuable incentive for consumers and businesses who are considering purchasing an EV or FCV.
Starting Jan. 1, 2024, consumers can use their clean vehicle tax credit as a rebate at the dealership when they buy an EV. This means that consumers will get their tax credit upfront, instead of having to wait until they file their taxes.