New vehicle credit (up to $7,500)
The credit breaks into two $3,750 components: critical minerals sourcing and battery components assembled in North America. Many vehicles qualify for one half but not both.
Income limits
Single filers with AGI over $150,000 don't qualify. MFJ over $300,000. HoH over $225,000. Either current-year or prior-year AGI below the cap works.
Used vehicle credit (up to $4,000)
30% of the sale price up to $4,000, for vehicles 2+ years old sold for $25,000 or less by a licensed dealer. Income limits are $75,000 single / $150,000 MFJ.
Common questions
- Can I transfer the credit to the dealer?
- Yes. Starting 2024, buyers can transfer the credit to the dealer at sale for a price reduction, regardless of their tax liability.
Related
Personal Income Tax Preparation
Federal and state 1040 preparation with year-round planning. We handle W-2, 1099, K-1, rental, and crypto income for individuals in Florida and all 50 states.
Tax Planning
Year-round tax planning for individuals and business owners. We project the year's income quarterly and model decisions before they become tax liabilities.
Home Energy Efficiency Tax Credits
The 25C credit returns 30% of insulation, window, door, and heat pump upgrades, plus $150 for a home energy audit. Annual caps apply, claimable every year.