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- Tax Credit
IRA Statuatory Location:
13402
Tax Code Location:
26 U.S. Code § 25E
New or Modified Provision:
New
Eligible Recipients:
Tax credit is not available for consumers who have adjusted gross incomes for the current or preceding year above $150,000 (couples), $112,500 (heads of household), $75,000 (singles). Individuals can claim only once per three years. Vehicles must be sold by a dealer; the sale price must be $25,000 or less; and it can only be claimed once per vehicle.
Tribal Eligibility:
Yes, point of sale transfer to registered dealers (definition of “dealer” includes persons licensed by Indian Tribal governments to engage in the sale of vehicles)
Funded by:
U.S. Department of Treasury
Description
To provide a tax credit for purchasers of pre-owned clean vehicles
Direct Pay Eligibility:
None
Transferability:
Yes. Starting in 2024, transferable only to the dealer at point of sale under section 25E(f) but not under section 6418.
Stackability:
No rules
Energy Community Bonus:
No
Relevant Announcements
Related Resources
Additional information is available on the Resources page.Key Details
Period of Availability
Generally, vehicles placed in service in 2023-2032.
Tax Mechanism:
Tax credit for consumers
Base Credit Amount:
The lesser of $4,000 or 30% of sale price
Bonus Credit Amount:
None