Pre-Owned Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

Beginning January 1, 2023, the Clean Vehicle Credit (IRC 25E) provides a tax credit of up to $4,000 for the purchase of a pre-owned EV or FCEV. Eligible vehicles must be of a model year at least two years prior to the year of purchase and may not have a purchase price above $25,000. Individuals with a gross annual income below the following thresholds are eligible for the tax credit:

• $150,000 for joint filers

• $112,500 for head-of-household filers

• $75,000 for single filers

Only one tax credit may be claimed per vehicle. Individuals may not claim more than one pre-owned vehicle tax credit in a three-year period. For more information about claiming the credit, see Internal Revenue Service (IRS) Used Vehicle Credit website and Form 8936, which is available on the IRS Forms and Publications website, and the final rule.

(Reference Public Law 117-169 and 26 U.S. Code 25E)