EV IRS Information

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Federal Tax Credit Up To $4,000 on Used Bolt EV and Bolt EUV!

Pre-owned all-electric, plug-in hybrid, and fuel cell electric vehicles purchased on or after January 1, 2024, may qualify for a federal income tax credit. This credit equals 30% of the sale price, up to a maximum credit of $4,000. Starting January 1, 2024, customers have the option to use the credit as a point of sale rebate.

Eligibility Criteria :

• Vehicle must be purchased from a dealer.

• Sale price should be $25,000 or less.

• The vehicle must have a model year two years prior to the current calendar year. Search your desired Electric Vehicle here to see if it qualifies.

Buyer Checklist:

Before transferring the credit, ensure you have the necessary documentation :

• Legal name as on government-issued photo identification.

• Taxpayer ID (SSN or TIN).

• Copy of government-issued photo identification.

• Attestation regarding modified Adjusted Gross Income limitations.

• Qualified buyer attestation for used clean vehicles.

• Modified Adjusted Gross Income Limitations:

For new clean vehicles :

• Married filing jointly or filing as a qualifying widow(er): $300,000

• Head of household: $225,000

• All other taxpayers: $150,000

For used clean vehicles :

• Married filing jointly or filing as a qualifying widow(er): $150,000

• Head of household: $112,500

• All other taxpayers: $75,000

Question 1: If the customer transfers the $4,000 federal credit as a rebate to reduce the final cost, does it reduce the selling price for purposes of calculating eligibility for qualifying new and used alternative fuel and plug-in hybrid vehicles?

Answer 1: No, dealers may not deduct any federal tax credits when determining eligibility for exemptions.

Example: If a Selling price of a vehicle is $27999 the customer cannot use the $4000 point of sale rebate to make the vehicle Price $23999 so it qualifies. The Price must be $25000 or less to qualify for the $4000 IRS tax credit or point of sale rebate.

Repayment to the IRS:

If a buyer transfers a credit but exceeds modified adjusted gross income limitations in both the year the vehicle is placed in service and the prior year, the buyer must repay the full amount of any transferred credit to the IRS when filing their tax return.

Remember: Filing Form 8936 is the responsibility of the purchaser, regardless of the credit transfer