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Making the switch to an EV in 2024?

Here’s what you need to know about the new tax incentive rules.

 

INSTANT REBATE

After confirming the sale is eligible for a $7,500 tax credit, the dealer credits you the money and then the dealer is reimbursed by the government. Effectively, the tax credit is being handled by the dealership.

KNOW THE INCOME CAP

You need to attest that you are under the income cap. It’s based on your modified AGI (adjusted gross income), typically lin 11 on your 1040 form.

  • $300,000 for married couples filing jointly
  • $225,000 for head of households
  • $150,000 for all other filers

IT DOESN’T MATTER WHAT YOU OWE IN TAXES

New This Year: You get the full credit, regardless of your tax liability.

MADE IN AMERICA AND UNDER A PRICE CAP

New This Year: Full EV and plug-in hybrids can qualify for the credit. To qualify, the EV must:

  • Meet a specific battery size
  • Specific vehicle weight
  • Assembled in North America
  • Sticker price $55,000 or less for cars
  • Sticker price $80,000 or less for SUVs and trucks

BATTERY-SOURCING REQUIREMENTS

The batteries in vehicles matter because the material that go into the batteries need to meet sourcing requirements. Half of the credit focuses on the materials and the other half focuses on where the parts of the battery are manufactured.

We get it, it’s confusing! Check out the resources below to help you purchase your EV or plug-in hybrid. Then grab a free quote for your EV charger installation.

The IRS website has the Clean Vehicle Tax Rebates Page

Fueleconomy.gov has a list of qualifying vehicles.