To get the 2023 federal electric vehicle (EV) tax credit, formally known as the Clean Vehicle Credit, you must meet specific eligibility rules for yourself, your income, the vehicle, and its price. The credit is worth up to $7,500 and is claimed when you file your federal income tax return for the year you took delivery of the car.
First, confirm your personal eligibility. Your Modified Adjusted Gross Income (MAGI) must not exceed the IRS limits. For 2023, the threshold is $150,000 for single filers, $225,000 for heads of household, and $300,000 for married couples filing jointly. This credit is non-refundable, meaning it can reduce your tax liability to zero, but you won't receive a refund for any leftover credit amount.
The vehicle itself must also qualify. It must be a new, clean-energy vehicle (all-electric, plug-in hybrid, or hydrogen fuel cell) with a final assembly in North America. Critical mineral and battery component sourcing requirements also took effect in 2023, which can reduce the full credit to $3,750 or disqualify a vehicle entirely. Furthermore, there are Manufacturer's Suggested Retail Price (MSRP) caps: no more than $80,000 for vans, SUVs, and pickup trucks, or $55,000 for all other vehicle types (sedans, wagons, etc.).
The process is straightforward if you meet all criteria. You'll need to provide your tax preparer (or input into your tax software) the vehicle's VIN (Vehicle Identification Number) and a copy of the seller's written report, which the dealer is required to provide you at the point of sale. You then claim the credit by filing IRS Form 8936 with your annual tax return.
| Vehicle Model | MSRP Cap Category | Final Assembly | Potential Credit (2023) |
|---|
| Ford F-150 Lightning | SUV/Truck (≤$80,000) | North America | Up to $7,500 |
| Tesla Model 3 Sedan | Sedan (≤$55,000) | North America | Up to $7,500 |
| Chevrolet Bolt EV | Sedan (≤$55,000) | North America | Up to $7,500 |
| Rivian R1S | SUV (≤$80,000) | North America | Up to $7,500 |
| Hyundai Ioniq 5 | SUV (≤$80,000) | South Korea | $0 (Not assembled in NA) |
