The IRS has published new guidance on credits for clean vehicles purchases. Those purchasing new EV or FCV (plug-in electric vehicle and fuel cell vehicle respectively), may qualify for a clean vehicle tax credit.
According to the IRS publication, ‘The Inflation Reduction Act of 2022’ amends previous rules to claim this credit for qualified vehicles purchased from 2023 to 2032.
“The credit is available to individuals and their businesses.
To qualify, you must:
Buy it for your own use, not for resale
Use it primarily in the U.S.
In addition, your modified adjusted gross income (AGI) may not exceed:
$300,000 for married couples filing jointly
$225,000 for heads of households
$150,000 for all other filers
You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.
The credit is nonrefundable, so you can’t get back more on the credit than you owe in taxes. You can’t apply any excess credit to future tax years.”
The full text can be found here