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?

When the tax credit was originally signed into law, many of the vehicles that were eligible were older EVs with limited range, as well as plug-in hybrids. However, there are now bargains to be found on newer EVs with more than 250 miles of range.

Curious if a cheap EV could work for you? Nervous about range restrictions but want a sweet, emissions-free ride?

Remember these rules for vehicle eligibility.

  • 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!

Current Market Trends

As of 4-1-24, these are the most commonly found plug-in vehicle listings priced under $25,000. Vehicles in this price range make up around 30% of all inventory.

Make Model Year
  • Chevrolet Bolt EV
  • Nissan LEAF
  • Chevrolet Bolt EUV
  • Tesla Model 3
  • Chevrolet Volt PHEV
  • Tesla Model S
  • BMW i3
  • Ford Fusion Energi PHEV
  • Toyota Prius Prime PHEV
  • Hyundai Kona EV
  • Honda Clarity PHEV
  • Volkswagen e-golf
  • Chrysler Pacifica PHEV
Average Price of sub $25K Models
  • $18,527
  • $12,160
  • $22,869
  • $24,681
  • $12,978
  • $21,621
  • $17,679
  • $14,978
  • $22,441
  • $21,642
  • $22,941
  • $15,004
  • $22,709

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