IRS Updates Eligible List of EV Vehicles Available for Credit
On January 1, 2023, new federal EV tax credits went into effect, which aim to promote the purchase of new, used, and commercial electric vehicles in the United States.
The EV tax credit is a tax incentive provided by the government to encourage the purchase of electric vehicles (EVs). The tax credit is a reduction in the amount of taxes owed by a taxpayer who has purchased an electric vehicle. The amount of the tax credit varies depending on the type of vehicle and the battery size, but it can be up to several thousand dollars.
The Clean Vehicle Credit, enacted as part of the Inflation Reduction Act of 2022 (the “Act”), allows certain retail customers to claim a non-refundable federal income tax credit of up to $7,500, depending on the satisfaction of certain vehicle and individual eligibility criteria (the “Federal EV Tax Credit”). can be claimed by eligible consumers on their annual U.S. tax return and can be used to reduce their federal income tax liability.
Based on the latest U.S. Treasury guidance issued in April, General Motors has determined the following new vehicles that are under the respective MSRP caps will continue to meet the eligibility requirements for a federal tax credit up to $7,500 in 2023:
- Chevrolet Bolt EV
- Chevrolet Bolt EUV
- Chevrolet Blazer EV
- Chevrolet Equinox EV
- Chevrolet Silverado EV
- Cadillac LYRIQ
The Department of Treasury continues to issue rules and regulations to implement the Act, and additional requirements may be imposed. Please visit this page for FAQs issued by the IRS and U.S. Treasury.
Wheelers is here to help you navigate the EV buying and reservation process. Contact our team for details.
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