Welcome to 2023. With nearly two years of an overly-inflated used car market, second-hand car prices are finally trending downwards across the board. Used electric cars are now becoming more attainable, and with the recent signing of the, there is an opportunity some consumers can take advantage of: a $4,000 used EV tax credit. But before going ahead and purchasing a used EV, it's essential to understand how the credit works.
The tax credit will be available at dealerships starting on January 1, 2024. Until then, it'll function as the outgoing federal EV tax credit. For instance, if you owe $3,000 in federal taxes, you'd only get to use 75% of the $4,000 credit on your federal taxes. Moreover, there are a strict set of guidelines your vehicle will have to check off to get the credit:
Individuals must make under $75,000 annually to claim the credit. The head of household can make up to $112,500, and joint filers can make up to $150,000.The car must be at least two years old. The vehicle can be a plug-in hybrid, though the battery would have to be at least 7kWh , and the Honda Accord Plug-in Hybrid won't qualify, among others).Finally, the car must be on
Skip the i3, e-Golf, and 500e. They are severely limited vehicles. The Bolt is a true ice replacement.
Tax credit not a tax rebate. If you paid in only 2,500 in 2023 and but a qualifying bev. You only get $2,500 back you paid in. Not like the child tax credit that acts as money you paid in.
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Source: cleantechnica - 🏆 565. / 51 Read more »