Residential EV Incentives
Looking to take advantage of the latest electric vehicle incentives?
$0
New Electric Vehicle Tax Credit
$0
Used Electric Vehicle Tax Credit
$0
Home Electric Vehicle Charging Rebate
What is an income tax credit?
A tax credit is not instant discount off the MSRP of the vehicle. Unless you transfer your credit, you do not necessarily drive away from the dealership having deducted that amount — you get a deduction when you file your taxes the following year. So a maximum tax credit is only worth $7,500 to someone whose income tax bill at the end of the year is $7,500 or more. If you only owe $5,000 in income tax for a particular year, then that's the amount the tax credit will be good for.
Beginning in 2024, the tax credit can be applied at the point of sale to reduce the cost of the purchase by that amount. Taxpayers have the option to transfer their entire tax credit to a registered dealer in exchange that amount in cash or as a partial payment for the vehicle. Note: if you transfer your credit but then end up exceeding the income limitations for that tax year, you must repay the IRS the full amount.
For more details about the transfer of credits, check out this IRS FAQ page.
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.
Find out what information that report should contain in this guide from the IRS.
New EV Purchase Incentives
New electric vehicles: up to $7,500 tax credit.
For vehicles placed in service April 18, 2023 and after.
Which New Vehicles Qualify?
Not every new electric vehicle qualifies for that maximum $7,500 tax credit. The incentive available changes depending on a number of factors, including where the vehicle was assembled, the vehicle's battery size, and where the minerals and components of that battery are sourced from.
Battery Capacity & Vehicle Weight
Battery Capacity: most any all-electric or plug-in hybrid vehicle on the market today will meet the minimum. Vehicle Weight: considering an all-electric Ford F-150 Lighting weighs 6,500 lbs, most any car, SUV or pick-up will be under the maximum.
Battery Capacity
at least
7 kWh
(kilowatt-hours)
Vehicle Weight
less than
14,000 lbs
(pounds)
MSRP Limits
The vehicle's manufacturer suggested retail price (MSRP) can't exceed the amounts below. Many manufacturers have lowered base MSRPs to meet this requirement, but pay attention to the price of different trim levels and add-ons, as these can boost a model above the limit.
MSRP
$80,000
SUVS, Vans, Pickup Trucks
MSRP
$55,000
All other vehicles
Mineral and Battery Components
Percentage requirement that must be sourced from the United States or countries with a free trade agreement with the U.S. Meets both requirements = $7,500
*These requirements will increase annually, maxing out at an 80% critical mineral requirement in 2027, and a 100% battery component requirement in 2029.
Critical Mineral Requirement
50%
for 2024*
$3,750
Battery Component Requirement
60%
for 2024*
$3,750
Income Limits by Tax Status
To qualify, the vehicle must be bought for your own use, and used primarily in U.S. Your modified adjusted gross income (AGI) may not exceed the amounts shown.
Single
$150k
max income
Head of Household
$225k
max income
Married Filing Jointly
$300k
max income
Try the Department of Energy's Tax Credit Lookup Tool for New EVs
Used EV Purchase Incentives
Used electric vehicles: up to $4,000 tax credit.
Which Used Vehicles Qualify?
The tax credit for previously owned all-electric or plug-in hybrid vehicle equals 30% of the sale price, up to a maximum of $4,000. To qualify, the vehicle must be purchased from a licensed dealer and meet requirements for battery capacity, vehicle weight, sale price, and model year. You also must not have not already claimed a used vehicle credit in the past 3 years.
Battery Capacity & Vehicle Weight
Battery Capacity: most any all-electric or plug-in hybrid vehicle on the market today will meet the minimum. Vehicle Weight: considering an all-electric Ford F-150 Lighting weighs 6,500 lbs, most any car, SUV or pick-up will be under the maximum.
Battery Capacity
at least
7 kWh
(kilowatt-hours)
Vehicle Weight
less than
14,000 lbs
(pounds)
Used Electric Vehicle Sale Price & Model Year
Sale price: includes all dealer-imposed costs or fees not required by law. It doesn't include costs or fees required by law, such as taxes or title and registration fees.
Model year: at least 2 years earlier than the calendar year when you buy it. For example, a vehicle purchased in 2024 would need a model year of 2022 or older.
Sale Price
$25,000
or less
Model Year
2 yrs
at least 2 years old
Income Limits by Tax Status
To qualify, your modified adjusted gross income (AGI) may not exceed the amounts shown, and you may not be claimed as a dependent on another person's tax return.
Single
$150k
max income
Head of Household
$225k
max income
Married Filing Jointly
$300k
max income
Try the Department of Energy's Tax Credit Lookup Tool for Used EVs
Looking for information on tax credits for vehicles purchased prior to 2024? Find out more details on the IRS Clean Vehicle Tax Credits page.