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26 U.S. Code § 25E

IRA Statuatory Location:


Tax Code Location:

26 U.S. Code § 25E

New or Modified Provision:


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


To provide a tax credit for purchasers of pre-owned clean vehicles
Direct Pay Eligibility:
Yes. Starting in 2024, transferable only to the dealer at point of sale under section 25E(f) but not under section 6418.
No rules
Energy Community Bonus:

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:
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