The Inflation Reduction Act changed the landscape for electric vehicle tax credits
The electric vehicle credits have changed as a result of the Inflation Reduction Act.
The maximum amount of credit is still $7,500 so long as the vehicle meets certain requirements. We suggest using the following link to look up your vehicle's eligibility. https://fueleconomy.gov/feg/tax2023.shtml
Also introduced were the following adjusted gross income (AGI) requirements.
• $300,000 for MFJ;
• $225,000 for HOH; or
• $150,000 for all other taxpayers
Lastly, applicable to vehicles placed in service after December 31, 2022, the credit cannot be claimed for vehicles whose manufacturer’s suggested retail price (MSRP) exceeds:
• $80,000 for vans, pick-up trucks, or SUVs; and
• $55,000 for all other vehicles
The credit offsets taxes dollar for dollar, but is not refundable and cannot be carried forward.