Before you buy your VEHICLE in 2023
You may want to check if your vehicle qualifies for a tax credit, as there are certain requirements. If you buy a new plug-in electric vehicle (EV), plug-in hybrid (PHEV) or fuel cell vehicle (FCV) in 2023, you may qualify for a clean vehicle tax credit up to $7,500.00.
To qualify, among other requirements, you must:
- Buy it for your own use, not for resale
- Use it primarily in the US
- Your Modified Adjusted Gross Income is subject to limitations (for example $300K for married couples filing jointly or $150K for single filers)
- Vehicle battery capacity needs to be of at least 7 kilowatt hours
- Vehicle gross weight needs to be under 14,000 pounds
- Vehicle must be made by a qualified manufacturer and undergo final assembly in the North America. Use Vehicle Identification Number to ensure that the vehicle was assembled in North America. The IRS recommends to input the VIN number to get this information at:
- Vehicle retail price cannot exceed $80K for vans, Sports Utility Vehicles, and Pick up trucks or $55K for all other vehicles.
How can you possibly figure it out? To start with look at the requirements and list of vehicles that may qualify for the tax credit in 2023 at https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-purchased-in-2023-or-after
If you scroll toward the bottom and click on the "Go to fueleconommy.gov" it will allow you to filter your purchase scenarios and see a list of eligible cars with the related credit amount. Or you can go directly to https://fueleconomy.gov/feg/tax2023.shtml to quickly filter your purchase scenarios, by vehicle type and depending if the auto is purchased before or after April 18th 2023.
I agree that it is a nuisance to have to look it all up, but a $7.5K tax credit might be worth it. Hopefully, your auto dealer will be helpful as well.