VFI
Valdivia Financial, Inc.

A Certified Public Accounting Firm

Federal Tax Credits for Electric Vehicles (EVs) in 2024

The federal tax credits for electric vehicles have undergone significant updates to encourage the adoption of EVs further. These changes are part of the efforts to make clean energy vehicles more accessible and affordable to a broader range of consumers. Here are the key points to consider:

New and Used EV Tax Credits

  • New EVs: Buyers of new electric vehicles (including Plug-in Hybrid EVs) can qualify for a tax credit of up to $7,500. The exact amount depends on the vehicle’s battery size and where its components were manufactured or assembled.
  • Used EVs: A revamped tax credit for used electric vehicles offers a credit equal to 30% of the sale price, up to $4,000, under specific conditions​​.

Eligibility Criteria

  • Price Caps: There are MSRP limits to qualify for the tax credit: $80,000 for vans, SUVs, and pickup trucks; $55,000 for other vehicles. Used vehicles must have a sale price of $25,000 or less​

Income Limits: For new EVs, income caps are set at $150,000 for single filers, $225,000 for heads of households, and $300,000 for joint filers. For used EVs, the limits are $75,000 for single filers, $112,500 for heads of households, and $150,000 for joint filers​​.Final Assembly Requirements: Vehicles must have had their final assembly in North America to be eligible for the credit​

How to Claim the Tax Credit

To claim the EV tax credit, taxpayers need to file Form 8936 with their federal income tax returns. For the first time, starting in 2024, the credit can be transferred to the dealer at the point of sale, allowing the buyer to use it as an immediate discount​

Eligible Vehicles

Not all EVs qualify for the full $7,500 tax credit. The eligibility depends on various factors, including the MSRP, the vehicle’s final assembly location, and the origin of battery components. Here’s a list of some vehicles that qualify for federal tax credits as of March 2024, but remember, eligibility can vary by specific model and year:

  • Acura ZDX (2024): Up to $7,500
  • Chevrolet Bolt EUV (2022-2023): Up to $7,500
  • Ford F-150 Lightning (2022-2024): Up to $7,500
  • Tesla Model Y (2023-2024): Up to $7,500
  • Volkswagen ID.4 (2023-2024): Up to $7,500​

For a complete and updated list of eligible vehicles, including Plug-in Hybrid Electric Vehicles (PHEVs) that currently qualify, and for more specific details on tax credit amounts and eligibility criteria, it’s essential to check directly with manufacturers or local dealers.

Para Nuestros Clientes de Habla Hispana

Entendemos la importancia de una comunicación clara y un servicio personalizado. Para nuestros clientes que prefieren llevar a cabo su planificación financiera, preparación de impuestos y servicios de asesoramiento en español, estamos más que contentos de acomodarlos.

Por favor, no dude en ponerse en contacto con nosotros para programar una cita. Nuestro equipo está listo para asistirle en español, asegurándose de que reciba el apoyo dedicado y el consejo experto que necesita para su éxito financiero.

Contáctenos para Programar una Cita