Used EV Tax Credit
SAVE UP TO $4,000 WITH THE
USED EV TAX CREDIT
The Used Electric Vehicle (EV) Federal Tax Credit can help you save up to $4,000 on your next pre-owned electric car. Tom Bush Volkswagen will make it easy for you to apply this credit towards qualified vehicles. We have created a guide to help understand who and what qualifies.
Understanding the Federal Used EV Tax Credit
To qualify for the federal used EV tax credit, both the buyer and the vehicle they’re purchasing need to meet specific qualifications established by the federal government and codified in the Inflation Reduction Act. Tom Bush Volkswagen makes it easy to understand which vehicles may qualify for the credit. Just CLICK HERE to shop eligible vehicles.
Currently, tax filers must file Form 8936 with the IRS to claim a used EV tax credit, which they can then apply to reduce their federal tax liability.
Qualified customers who purchase a qualified vehicle with Tom Bush Volkswagen have the option to apply the value of their tax credit directly towards their new ride at the time of purchase, rather than waiting to claim the credit at tax time.
Dealers must register with the IRS to allow qualified customers to apply the federal used EV tax credit to the purchase price of the vehicle, so not every dealer will offer this alternative way to take advantage of this tax credit.
How to Find Eligible EV Tax Credit Vehicles
on Our Site
- Select the "SHOP EV" menu on our site.
- Choose EV Tax Credit Vehicles*
Do You Qualify For An EV Tax Credit?
If your modified adjusted gross income (MAGI) exceeds the following amounts, you won’t qualify for the used EV tax credit:
- $112,500 for heads of household
- $150,000 for joint filers or spouses
- $75,000 for all other filers
Learn more about MAGI.
In addition to meeting the MAGI requirements, you must:
- Buy the car for personal use, not for resale
- Not be a dependent on someone else’s tax return
- Not have claimed another used EV tax credit within the last three years
- Not be the original owner of the vehicle you purchase
What Vehicles Qualify For The EV Tax Credit?
- Have a sale price of $25,000 or less, including non-government fees (e.g., shipping and delivery fees); and
- Be manufactured at least two years prior to the year of purchase (so for 2024, only cars made in 2022 and earlier qualify)
- Be a Fuel Cell Vehicle or plug-in EV with a battery capacity of at least 7 kilowatt hours;
- Be bought for use primarily within the U.S;
- have a gross vehicle weight rating of less than 14,000 pounds;
*Please contact dealer to verify vehicles actually qualifies. Some vehicles are designated at hybrid but may not qualify.