For more information, including additional eligibility requirements, see the IRS Plug-In Electric Drive Vehicle Credit website. free-trade agreement partner or recycled in North America, must meet or exceed the following thresholds:īattery components minimum percent value requirementįurther guidance on additional 30D requirements is forthcoming. The amount of the credit depends on whether the vehicle meets certain critical minerals and battery component requirements.Ĭritical Minerals: To be eligible for the $3,750 critical minerals portion of the tax credit, the percentage of the value of the battery’s critical minerals that are extracted or processed in the United States or a U.S. To be eligible for the Clean Vehicle Credit, the battery powering the vehicle must have a capacity of at least seven kilowatt-hours (kWh). The MSRP can be found on the vehicle’s window sticker, which is also known as the “Monroney label” the MSRP for this purpose includes any trim, options, or accessories for the particular vehicle and excludes the destination fee and dealer-provided options and accessories.Īdditionally, a taxpayer’s eligibility for the tax credit may be limited by thresholds for modified adjusted gross income (modified AGI) only individuals having a modified AGI below the following thresholds for the current tax year or the prior tax year are eligible for the tax credit: Vans, sport utility vehicles, and pickup trucks must not have an MSRP above $80,000, and all other vehicles may not have an MSRP above $55,000. Vehicles meeting both the critical mineral and the battery component requirements are eligible for a total tax credit of $7,500. Vehicles that meet the critical mineral requirements are eligible for a $3,750 tax credit, and vehicles that meet the battery component requirements are eligible for a $3,750 tax credit. These latter requirements came into effect upon the publication of the Treasury Department’s guidance document regarding the critical mineral and battery component requirements. Additional critical mineral and battery component requirements also apply as of April 18, 2023, which alter how the tax credit is calculated and may alter the amount of the tax credit available. A North American final assembly requirement applies for vehicles purchased on or after August 17, 2022. Vehicles Placed in Service on or After April 18, 2023įor vehicles delivered on or after April 18, 2023, limitations apply that went into effect January 1, 2023, related to the vehicle’s manufacturer’s suggested retail price (MSRP), the buyer’s modified adjusted gross income, and the vehicle’s battery capacity. For a list of incentives by vehicle, see Federal Tax Credits on. For up-to-date information on eligibility requirements for the Clean Vehicle Credit or for additional detail, see the information from the IRS.
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