The Inflation Reduction Act includes a tax credit for

Used

Clean Vehicle Tax

Credit Checklist

The Inflation Reduction Act includes a tax credit for

qualifying used clean vehicles – and it can result in major

savings. If you’ve been in the market for a vehicle, now is

the perfect time to take advantage of these major savings

opportunities for used clean vehicles.

See requirements below*

How to qualify for the Used Clean Vehicle Tax Credit

Purchasing a used clean vehicle

Check all

that apply

Taxpayer Eligibility

The taxpayer’s modified adjusted gross income for either the current year or prior year must be:

Taxpayer income

and status

❯ $150,000 or less for joint filers and surviving spouses,

❯ $112,500 or less for head of household filers, or

❯ $75,000 or less for other filers.

Taxpayer status

Taxpayer eligibility

Taxpayer must be an individual who is not a dependent that is claimed on another taxpayer’s tax

return and must be buying the vehicle for use and not resale.

Taxpayer must not have claimed this credit in the 3-year period prior to the sale of the qualifying

vehicle. Unsure if you qualify? Consult your tax advisor.

Note: 2023 is the first year that this credit can be claimed.

Vehicle Eligibility

Vehicle type and age

The vehicle is an electric vehicle, plug-in hybrid electric vehicle, or fuel cell vehicle, and the model

year is at least two years earlier than the calendar year of your purchase.

See the current list of eligible models on FuelEconomy.gov.

Vehicle sale price

and dealer

Vehicle sale price is $25,000 or less and the vehicle is sold by a licensed dealer registered with

the IRS. The sale price of a previously-owned clean vehicle is the total sale price agreed upon

by the buyer and seller in a written contract at the time of sale, including any delivery charges

and after the application of any incentives, but excluding separately-stated taxes and fees

required by State or local law.

Previous transfer

status

To be a qualified sale, a transfer must be the first transfer since August 16, 2022, as shown by

the vehicle history of the used clean vehicle after the sale to the person to whom the original

vehicle was sold. Check the vehicle history report of the vehicle and see frequently asked

questions about eligibility rules.

Time of sale report

(also known as seller

report)

Dealer provides buyer a time of sale report (also called a seller report), which will have

information such as dealer name, address, VIN, make, model, placed in service date, and

maximum credit.

If you checked ALL of the above, you may qualify for a tax credit of 30% percent of the sale price up to a maximum of $4,000. Learn more about

the credit on IRS.gov and check a vehicle’s eligibility on FuelEconomy.gov.

*Eligible used clean vehicles must weigh less than 14,000 pounds, have at least a 7 kilowatt hours battery, and must have been placed into

service starting January 1, 2023, or later. For more information on the Used Clean Vehicle Credit check IRS.gov.

Have more questions?

Visit www.irs.gov/cleanvehicles for more information on the Inflation Reduction Act’s clean vehicle tax credits.

Publication 5866-A (Rev. 1-2024) Catalog Number 94387A Department of the Treasury Internal Revenue Service www.irs.gov