Yes, a used electric car can qualify for a tax credit, but it's a completely different program with strict rules separate from the new EV credit. Officially known as the Used Clean Vehicle Credit, this incentive makes certain pre-owned EVs more affordable, offering a credit of 30% of the sale price, up to a maximum of $4,000.
To qualify, the vehicle and sale must meet several key criteria:
- Vehicle Age and Price: The EV must be at least two model years old. For example, in 2024, eligible models would be from 2022 or older. The sale price cannot exceed $25,000.
- First Qualified Use: The credit is intended for the first transfer of the vehicle to a qualified buyer since August 16, 2022. This prevents the same car from claiming the credit multiple times.
- Income Limits: Your modified adjusted gross income (MAGI) must be below a specific threshold. For individuals, it's $75,000; for heads of households, $112,500; and for couples filing jointly, $150,000.
- Qualified Seller: The vehicle must be purchased from a licensed dealer, not a private party.
The credit is non-refundable, meaning it can reduce your tax liability to zero but you won't get a refund for any leftover amount. It's crucial to consult the IRS website or a tax professional and have the dealer submit the required information at the time of sale.
| Eligible Used EV Example (2022 Model) | Approximate Used Price | Potential Credit (30% of Sale Price) |
|---|
| Chevrolet Bolt EV | $19,000 | $5,700 (capped at $4,000) |
| Nissan Leaf SV Plus | $22,500 | $6,750 (capped at $4,000) |
| Hyundai Kona Electric | $23,000 | $6,900 (capped at $4,000) |
| BMW i3 | $24,500 | $7,350 (capped at $4,000) |
| Audi e-tron | $25,000 (max limit) | $7,500 (capped at $4,000) |
