Agency: Department of the Treasury
Description:
Tax credit for the purchase of certain new electric vehicles.
Bill Section:
13401
US Code:
26 USC 30D
New or Existing:
Existing
Potential Cost:
$7,541,000,000
Timeline:
2023 – 2032
TCS Notes:
Credit of up to $7,500 for the purchase of a qualified plug-in electric vehicle (EV) or fuel cell electric vehicle (FCV). A vehicle qualifies for a credit of $3,750 if at least 40% of the value of the battery’s applicable critical minerals were extracted or processed in the U.S. or another country with which the U.S. has a free trade agreement, or recycled in North America. An additional $3,750 credit applies if at least 50% of the batter assembly occurred in the U.S. Vehicles purchased in 2024 do not qualify if their battery is assembled in a country of concern. Vehicles purchased in 2025 do not qualify if any of the materials for their battery are mined or recycled in a country of concern.
To claim the credit, filers must have an adjusted gross income below $300,000 for married couples filing jointly, $225,000 for heads of households, and $150,000 for all other filers.