How do I get the full 7500 EV tax credit

By Isabella Storyclaire

last updated September 17, 2024

Contributions sourced from

Credits for new clean vehicles purchased in 2023 or after

If you place in service a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV)in 2023 or after, you may qualify for a clean vehicle tax credit. For more information on how to qualify see Publication 5866, New Clean Vehicle Tax Credit ChecklistPDF.

At the time of sale, a seller must give you information about your vehicle's qualifications. Sellers must also register online and report the same information to the IRS. If they don't, your vehicle won't be eligible for the credit. For more information see Information for Consumers Purchasing a New or Used Clean Vehicle, Publication 5905PDF.

Find information on credits forused clean vehicles,qualified commercial clean vehiclesandnew plug-in EVs purchased before 2023.

Who qualifies

You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.

The credit is available to individuals and their businesses.

To qualify, you must:

Buy it for your own use, not for resale
Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

$300,000 for married couples filing jointlyor a surviving spouse
$225,000 for heads of households
$150,000 for all other filers

You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the 2 years, you can claim the credit.

If you do not transfer the credit, it is nonrefundable when you file your taxes, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.

Credit amount

The amount of the credit depends on when you placed the vehicle in-service (took delivery), regardless of purchase date.

For vehicles placed in-service January 1 to April 17, 2023:

$2,500 base amount
Plus $417 for a vehicle with at least 7kilowatt hours of battery capacity
Plus $417 for each kilowatt hour of battery capacity beyond 5kilowatt hours
Up to $7,500 total

In general, the minimum credit will be $3,751 ($2,500 + 3 times $417), the credit amount for a vehicle with the minimum 7kilowatt hours of battery capacity.

For vehicles placed in-service April 18, 2023 and after:

Vehicles will have to meet all of the same criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to:

$3,750 if the vehicle meets the critical minerals requirement only
$3,750 if the vehicle meets the battery components requirement only
$7,500 if the vehicle meets both

A vehicle that doesn't meet either requirement will not be eligible for a credit.

Qualified vehicles

Click the button below to see if a vehicle is eligible for the new clean vehicle credit.Go to fueleconomy.gov

To qualify, a vehicle must:

Have a battery capacity of at least 7kilowatt hours
Have a gross vehicle weight rating ofless than 14,000 pounds
Be made bya qualified manufacturer
- FCVs do not need to be made by a qualified manufacturer to be eligible. SeeRev. Proc. 2022-42for more detailed guidance.

Undergo final assembly in North America
Meet critical mineral and battery component requirements (as of April 18, 2023)

The sale qualifies only if:

You buy the vehicle new.
The seller reports required information to you at the time of sale and to the IRS.

In addition, the vehicle's manufacturer suggested retail price (MSRP) can't exceed:

$80,000 for vans, sport utility vehicles and pickup trucks
$55,000 for other vehicles

MSRP is the retail price of the automobile suggested by the manufacturer, including manufacturer installed options, accessories and trim but excluding destination fees. It isn't necessarily the price you pay.

You can find your vehicle's weight, battery capacity, final assembly location (listed as "final assembly point") and VIN on the vehicle's window sticker.

How to claim the credit

To claim the credit, fileForm 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles)with your tax return. You will need to provide your vehicle's VIN.

Get a time-of-sale report

The dealer should give you a paper copy of a time-of-sale report when you complete your purchase.

Keep this copy for your records because it affirms that the dealer sent a report to the IRS on the purchase date.
If you didnt receive a copy of the report, follow ourstep-by-step guide.

File Form 8936 with your tax return

You must fileForm 8936when you file your tax return for the year in which you take delivery of the vehicle. This is true whether you transferred the credit at the time of sale or youre waiting to claim the credit when you file.

If you have questions or concerns, follow ourstep-by-step guide.

Topic A Frequently asked questions about the eligibility rules for the New Clean Vehicle Credit under 30D effective Jan. 1, 2023

Updated FAQs were released to the public in Fact Sheet 2024-14PDF, April 2024.

The Inflation Reduction Act of 2022 (IRA) makes several changes to the tax credit provided in 30D of the Internal Revenue Code (Code) for qualified plug-in electric drive motor vehicles, including adding fuel cell vehicles to the 30D tax credit. The IRA also added a new credit for previously owned clean vehicles under 25E of the Code.

These FAQs provide detail on how the IRA revises the credit available under 30D (New Clean Vehicle Credit) for individuals and businesses, and information on the credit available under 25E (Previously Owned Clean Vehicle Credit) for individuals, and the new credit for qualified commercial clean vehicles under 45W of the Code.

Q1. What is a new clean vehicle for purposes of the New Clean Vehicle Credit? (updated Oct. 6, 2023)

A1. For purposes of the New Clean Vehicle Credit, a new clean vehicle is a clean vehicle placed in service on or after Jan. 1, 2023, that is acquired by a taxpayer for original use. In addition, to qualify for the credit, the vehicle:

Cannot be acquired for resale;
Must be manufactured by a qualified manufacturer;
Must meet the definition of a motor vehicle under Title II of the Clean Air Act (that is, any vehicle manufactured primarily for use on public streets, roads and highways. It must also have at least four wheels);
Must have a gross vehicle weight rating of less than 14,000 pounds;
Must be powered to a significant extent by an electric motor with a battery capacity of 7 kilowatt hours or more and must be capable of being recharged from an external source of electricity; and
Must have final assembly in North America.

To find a list of eligible vehicles visitfueleconomy.gov/newtaxcredit. See Topic A FAQ 2 for additional detail.

Moreover, for a taxpayer to claim the credit, the seller of a new clean vehicle must provide a report containing taxpayer and vehicle information to the taxpayer and to the IRS. See Topic B, FAQs 7-9for additional detail.

Fuel cell vehicles are also new clean vehicles if (1) the original use begins with the taxpayer, (2) the final assembly is in North America and (3) the seller of the vehicle provides a report to the taxpayer and the IRS.

Q2. Is there a list of vehicles that qualify for the New Clean Vehicle Credit? (updated Oct. 6, 2023)

A2. Yes. The Department of Energy hosts a purchaser-friendly version of IRSs list of eligible clean vehicles, including battery electric, plug-in hybrid and fuel cell vehicles, that qualified manufacturers have indicated to the IRS meet the requirements to claim the New Clean Vehicle Credit onFuelEconomy.gov. This list will be promptly updated as additional vehicle eligibility requirements take effect and as manufacturers provide updated information. That list is available here: FuelEconomy.gov/newtaxcredit. Verifying the manufacturer's suggested retail price, final assembly or that a specific vehicle is eligible may be necessary for certain makes and models: seeTopic B FAQs 3 and 4. Final confirmation of vehicle qualification should be done at time of purchase. The seller must provide you with a report about a vehicle's eligibility at the time of sale.

Q3. How can I confirm the final assembly of a new clean vehicle is in North America? (updated March 31, 2023)

A3. There is a Clean Vehicle Credit requirement that vehicles be assembled in North America. The list of eligible vehicles onFuelEconomy.govincludes information about a vehicle's final assembly. The final assembly point will be listed on the vehicle information label attached to each vehicle on a dealer's premises.

North America includes the United States (defined for this purpose to mean the 50 states, the District of Columbia and Puerto Rico), Canada and Mexico for purposes of determining the location of final assembly.

The VIN Decoder website for the National Highway Traffic Safety Administration (NHTSA) also provides final assembly location information.

Q4. How will I know what the vehicle identification number (VIN) is? (updated Oct. 6, 2023)

A4. The vehicle identification number (VIN) is a 17-character number that uniquely identifies a vehicle. It is permanently attached to a vehicle in several locations, appearing on the dashboard for most passenger vehicles and on the label located on the driver's door frame. The VIN is also located on the window sticker of new vehicles and often appears on the vehicle listing on dealers' websites or can be obtained by calling a dealership. Once the VIN is known, the VIN can be used to confirm final assembly. SeeTopic A FAQ 3.

Q5. If I order a new clean vehicle in one year and don't receive it until a subsequent year, when do I claim the credit?(updated March 31, 2023)

A5. The New Clean Vehicle Credit is claimed in the tax year that the vehicle is placed in service, meaning the tax year that includes the date the taxpayer takes delivery of the vehicle. See alsoTopic C FAQ 5 and Topic C FAQ 8.

Q6. What is the amount of the new clean vehicle credit? (updated March 31, 2023)

A6. Beginning Jan. 1, 2023, eligible vehicles may qualify for a tax credit of up to $7,500. The amount of the credit depends on when the eligible new clean vehicle is placed in service and whether the vehicle meets certain requirements for a full or partial credit.

For vehicles placed in service on or after April 18, 2023, the credit amount will depend on the vehicle meeting the critical minerals requirement ($3,750) and/or the battery components requirement ($3,750). A vehicle meeting neither requirement will not be eligible for a credit; a vehicle meeting only one requirement may be eligible for a $3,750 credit; and a vehicle meeting both requirements may be eligible for the full $7,500 credit.

For vehicles placed in service before or on April 17, 2023, the credit is calculated as a $2,500 base amount plus, for a vehicle which draws propulsion energy from a battery with at least 7 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours, up to an additional $5,000 beyond the base amount. In general, the minimum credit amount will be $3,751 ($2,500 + 3 * $417), representing the credit amount for a vehicle with the required minimum of 7 kilowatt hours of battery capacity.

Q7. Is the New Clean Vehicle Credit refundable or able to be carried forward? (updated Oct. 6, 2023)

A7. The New Clean Vehicle Credit may be claimed only to the extent of reported tax due of the taxpayer and cannot be refunded. The New Clean Vehicle Credit cannot be carried forward to the extent it is claimed for personal use on Form 1040, Schedule 3, Additional Credits and Payments. However, the New Clean Vehicle Credit can be carried forward to the extent it is claimed for business use on Form 3800, General Business Credit, as otherwise appropriate. SeeTopic H FAQ 3 regarding transfer of the Clean Vehicle Credits.

Q8. What does original use mean? (updated Feb. 3, 2023)

A8. For purposes of the New Clean Vehicle Credit, original use means the first use to which the vehicle is put after it is sold, registered or titled. A vehicle is not a new clean vehicle if (1) another person (including a dealer) has ever purchased, registered or titled the clean vehicle and (2) placed it in service for any purpose (including as a dealer demonstrator vehicle). Where a vehicle is acquired for lease to another person, the lessor is the original user. Test drives by potential buyers do not disqualify a vehicle from eligibility for the New Clean Vehicle Credit provided the dealer has not titled the vehicle to itself as a demonstrator vehicle.

Q9. What is a qualified manufacturer? (added Dec. 29, 2022)

A9. A qualified manufacturer is a manufacturer that enters into a written agreement with the IRS to file periodic reports with VINs and other information for each vehicle they manufacture. The IRS maintains a list of qualified manufacturers that can be found atClean Vehicle Qualified Manufacturer Requirements.

Q10. Do I have to report the vehicle identification number (VIN) on my return to claim the New Clean Vehicle Credit? (updated April 16, 2024)

A 10. Yes. The VIN of the new clean vehicle is required to be included on Form 8936, Clean Vehicle CreditsPDF when you file your income tax return.

Q11. Can the New Clean Vehicle Credit be split among multiple owners? (added March 31, 2023)

A11. No. In certain instances, multiple taxpayers may purchase, place in service and be titled as owners of a single vehicle. For example, a married couple that files separate tax returns may jointly purchase and take possession of a new clean vehicle that qualifies for the credit and both be titled as owners of the vehicle. However, only one taxpayer can claim the New Clean Vehicle Credit per vehicle placed in service, and the credit may not be allocated or prorated among multiple taxpayers. In the case of married taxpayers filing jointly, either spouse may be identified as the owner claiming the New Clean Vehicle Credit.

The name and taxpayer identification number of the owner claiming the New Clean Vehicle Credit should be listed on the sellers report. SeeTopic B, FAQ 9. Accordingly, multiple owners of a new clean vehicle should inform the seller which owner will claim the New Clean Vehicle Credit so that the seller can identify that taxpayer on the sellers report. The credit would be allowed only on the tax return of the owner listed in the sellers report.

Q12.What happens if the new clean vehicle sale is canceled or the vehicle is returned or resold shortly after purchase? (added Oct. 6, 2023)

A12. If a sale is canceled before the taxpayer places the vehicle in service, i.e., before the taxpayer takes possession of the vehicle, the taxpayer may not claim the New Clean Vehicle Credit. The vehicle will still be eligible for a New Clean Vehicle Credit upon a subsequent qualifying sale to another taxpayer.

In the case of a return made within 30 days of placing the vehicle in service, the purchaser may not claim a Clean Vehicle Credit with respect to the vehicle. Such vehicle, once returned, was already placed in service by a taxpayer, and a new Clean Vehicle Tax Credit is not available to a subsequent buyer.

In the case of a resale by the purchaser made within 30 days of placing the vehicle in service, the purchaser is treated as having purchased the vehicle with an intent to resell and cannot claim a Clean Vehicle Credit with respect to the vehicle. Such vehicle was already placed in service by a taxpayer, and a New Clean Vehicle Tax Credit is not available to a subsequent buyer.

Q13. If I place a vehicle in service in 2024 and it has battery components manufactured by a foreign entity of concern but it meets the critical mineral applicable percentage requirements for 2024, does my vehicle qualify for the $3,750 portion of the New Clean Vehicle Credit for meeting critical mineral requirements? (added Dec. 26, 2023)

A13. No, a vehicle placed in service after Dec. 31, 2023, with battery components manufactured or assembled by a foreign entity of concern is not eligible for any amount of New Clean Vehicle Credit, as statutorily provided in section 30D(d)(7)(B). If a vehicle has any battery components that were manufactured or assembled by a foreign entity of concern, then the vehicle is no longer considered a new clean vehicle and therefore is not eligible for a partial New Clean Vehicle Credit ($3,750).

Q14. Is a qualified manufacturer required in its written report to make an attestation under penalties of perjury demonstrating compliance with the foreign entity of concern requirements of section 30D? (added Dec. 26, 2023)

A14. Yes, a qualified manufacturer is required to include in its written report the following attestation: Under penalties of perjury, I declare that I have examined this certification, including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of this certification are true, correct, and complete. As such, a qualified manufacturers attestation of compliance with the foreign entity of concern requirements should be made to the best of the qualified manufacturers knowledge and belief.

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