Summary
The EV tax credit is still worth up to $7,500 and will be renewed in January of 2023 and will last for ten years through 2032.
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All-electric, plug-in hybrid, and fuel cell electric cars purchased new before January 1, 2023 may be eligible for a federal income tax credit of up to $7,500.
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The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.
3
For vehicles placed in service on or after January 1, 2023, the Clean Vehicle Credit provisions are subject to updated guidance from the Internal Revenue Service (IRS) and the U.S. Department of the Treasury.
4
The Treasury Department announced that buyers would be able to tell if a vehicle qualifies as a station wagon or SUV based on information that’s already on its window sticker, meaning more trim levels of the Mustang Mach-E and Tesla Model Y will qualify for a tax credit retroactive to Jan. 1, 2023.
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