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Use our checklist to determine if you’re eligible to claim up to $4000 off your taxes, then look at our list of frequently eligible vehicles. We’ll update this list monthly to reflect changing market trends and availability.
Are you eligible for $4000?
- You can only use this credit once every three years, but it’s a new program, so everyone will be eligible January 1, 2023!
- Income requirements: max adjusted gross income (AGI) of $75,000 for single filer; $150,000 for joint filers; $112,500 for Head of Household. You can check your AGI by looking at your previous year’s tax returns:
- Form 1040, Line 38
- Form 1040A, Line 21
- Form 1040EZ, Line 4
Note: the IRS has yet to release guidance on whether eligibility will be based on current year, or previous year AGI
- Is this car purchase for personal, non-commercial use? We still don’t know exactly how rideshare driving and other small business uses will be considered under the IRA, but Recurrent is lobbying for those uses to remain eligible
What cars are eligible?
Many of the vehicles that are eligible for the used tax credit in 2023 will be older EVs with limited range, as well as plug-in hybrids. Curious if a cheap EV could work for you? Nervous about range restrictions but want a sweet, emissions-free ride?
- Vehicles must be at least two models years old (2021 and earlier)
- Vehicle must have a battery with at least 7kWh - that’s mostly all plug-ins!
- Vehicles must be sold by a dealer
- Vehicle cannot have been used to claim this credit - again, this one is easy in 2023!
- Vehicle must be less than $25,000. Here’s a few of vehicles that are often sold below that price threshold, but you should also try to negotiate used car prices if the vehicle you love is too expensive!
- Early model Nissan LEAF (2011 to 2017) is under $15,000 with a range of 60 - 100 miles on full charge. Later model years are also available under $25,000.
- Fiat 500e (2014 - 2018) is under $20,000 with a range of 60 - 85 miles.
- VW e-Golf (2015 to 2018) is around $20K with a range of 70-85 miles.
- BMW i3 (2014 to 2017) is around $20,000 with a range of 65- 80 miles. With luck, you can find a 2018 for shy of $25,000.
- A 2017 or 2018 Chevy Bolt - it’s rare to find these under $25K so definitely grab this if you see it. Bolts generally have the cheapest cost per range mile, especially since they have all had their batteries replaced under the recall!
Current Market Trends
As of 10-28-22, these are the most commonly found plug-in vehicle listings priced under $28,000. Vehicles in this price range make up 17% of all inventory.
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