Agency: Department of the Treasury
Description:
Tax credit of 30% of the sale price of a previously owned electric vehicle but no more than $4,000
Bill Section:
13402
US Code:
26 USC 25E
New or Existing:
New
Potential Cost:
$1,347,000,000
Timeline:
2023 – 2032
Implementation Status/Rulemaking:
Guidance on the Used Clean Vehicle Credit: Source
TCS Notes:
Must have a sales price of $25,000 or less and be a model year at least 2 years earlier than the calendar year when purchased (ex: if purchases in 2024 it must be a 2022 model or earlier). The credit is nonrefundable and one can’t apply any excess credit to future tax years. Subject to a modified adjusted gross income (AGI) limit of: $150,000 for married filing jointly or a surviving spouse; $112,500 for heads of households; $75,000 for all other filers.