Best Used EVs to Take Advantage of the $4000 Federal Tax Credit
Best Used EVs to Take Advantage of the $4000 Federal Tax Credit
If you're used-car shopping, check out these makes and models from $15,000 to $25,000 that are eligible for the latest credits.
If you are considering the purchase of an electric vehicle, good news: It's now possible to get an up-front federal rebate on an EV purchase instead of filing for a tax credit, and that's true of used EVs as well, which can net buyers up to $4000. Instead of waiting until tax time, a customer can request $4000 off the purchase price. For shoppers looking to take advantage of this federal largesse, we've surveyed the landscape and chosen a total of nine EV models (all of which would net buyers the full amount) at three different price points.
To satisfy the rules, a used electric car must be:
- 2022 model year or older;
- priced below the $25,000 cap;
- sold by a dealership, not a private seller.
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Verify the guidelines first
https://www.irs.gov/credits-deductions/used-clean-vehicle-credit
Who Qualifies
You may qualify for a credit for buying a previously owned, qualified plug-in electric vehicle (EV) or fuel cell vehicle (FCV), including cars and light trucks, under Internal Revenue Code Section 25E.
To qualify, you must:
- Be an individual who bought the vehicle for use and not for resale
- Not be the original owner
- Not be claimed as a dependent on another person’s tax return
- Not have claimed another used clean vehicle credit in the 3 years before the purchase date In addition, your modified adjusted gross income (AGI) may not exceed: $150,000 for married filing jointly or a surviving spouse -- $112,500 for heads of households -- $75,000 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 income is below the threshold for 1 of the two years, you can claim the credit.