Am I eligible for the $4,000 used EV tax credit?

• You can only use this once every three years, and eligibility begins on January 1st, 2023!
• There is a max adjusted gross income (AGI) of $75k for a single filer, $150k for joint filers, and $112.5k for the head of household. Check your AGI by looking at last year’s returns:
• Form 1040, Line 38
• Form 1040A, Line 21
• Form 1040EZ, Line 4

There is not yet guidance on whether eligibility is on the current year, or previous year AGI.

Which cars are eligible for the used EV tax credit?

The vehicles that qualify for the used EV tax credit are generally slightly older. However, you can still qualify for the used EV tax credit on some exciting 2021 models, such as the 2021 Ford Mach-e or 2021 Polestar 2. Yes, plug-in hybrids also qualify for the used EV tax credit.

• Used EVs must be at least two model years old (2021 and earlier)
• Vehicles must have a battery with at least 7kWh (almost all plug-ins qualify!)
• Vehicle must be sold by a dealer
• The vehicle cannot already have been used to claim this credit (no worries in 2023!)
• The vehicle must be less than $25,000

To see the full list of used EVs that qualify for federal tax credits, check out our latest blogpost.

How much does a used EV cost?

Finally, we are beginning to see used EV prices beginning to decline. Most used EV prices range from $20k - $45k. Still, there are only so many used EVs for sale under the $25,000 mark, making them eligible for the used EV tax credit. Find used EVs for sale near you that qualify for the used EV tax credit.

While tougher to find used EVs from 2020, 2021 or 2022 that are under the $25,000 mark, there are some options available, especially from manufacturers such as Ford, Chevy and even Tesla. Currently, most options that check the boxes for the IRA used EV tax credit will come from 2019 and earlier.

What should I consider when buying a used EV?

Charging times, battery range, and battery condition are factors any used EV buyer should take into account.

Any tips on how I should spend my used EV tax credit?

84% of charging happens at home according to J.D. Power. Therefore, to experience the ultimate comfort of waking up to a fully charged battery, we suggest you consider installing a charging station (Level 2 charger) at your home. A Level 2 charger generally charges your EV up to six times faster than the standard charger which comes with the car. Our recommendation would be to use a part of the credit you save on the used EV for a charging station and installation to make your home EV-ready.