Tax Benefits Of Owning An Electric Vehicle

The Used EV Tax Credit: Save Big on Your Next Electric Vehicle

As of January 2024, buying a used electric vehicle (EV) is more affordable than ever. Through the federal Used EV Tax Credit, qualified buyers can save up to $4,000—or 30% of the vehicle's purchase price—when purchasing a used EV for less than $25,000 from a licensed dealer. At Recharged, we make it easy to take advantage of this credit, offering point-of-sale rebates and clearly marking eligible vehicles in our listings.

How Does the Used EV Tax Credit Work?

The tax credit is designed to help more drivers afford electric vehicles by providing immediate savings. Instead of waiting to claim the credit when filing taxes, eligible buyers can now transfer the credit to a participating licensed dealer at the time of purchase. This translates into an instant rebate or discount on the price of the vehicle, regardless of your federal tax liability.

At Recharged, as a licensed and point-of-sale registered dealer, we ensure a smooth process. You’ll see eligible savings applied directly at the time of purchase, with no need to navigate complex paperwork on your own.

Who Qualifies for the Tax Credit?

To benefit from the Used EV Tax Credit, both the buyer and the vehicle must meet specific criteria:

Buyer Requirements:

• Income limit - based on your modified adjusted gross income (AGI):

  • $75,000 for single filers

  • $112,500 for heads of household

  • $150,000 for joint filers

  • You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your income is below the threshold for 1 of the 2 years, you can claim the credit.

• You must be purchasing the EV for personal use and not for resale.

• Buyers can claim the credit only once every three years.

• Not have claimed another used clean vehicle credit in the 3 years before the purchase date.

Vehicle Requirements:

• The EV must be at least two model years old.

• The purchase price must be under $25,000.

• The battery must have a minimum capacity of 7 kilowatt-hours.

• The vehicle must be sold by a licensed dealer, like Recharged, and cannot have been resold to another individual after August 16, 2022.

• The credit cannot have been previously claimed for the vehicle.

• Be for use primarily in the United States.

Recharged simplifies your search by clearly identifying vehicles that meet these requirements, so you can shop confidently and even filter for qualifying vehicles.

Point-of-Sale Rebates with Recharged

At Recharged, we’ve streamlined the process to make EV ownership as affordable and accessible as possible. With the tax credit now available at the point of sale, eligible buyers can save instantly.

• Immediate Savings: The tax credit is applied as a discount or down payment at the time of purchase.

• Hassle-Free Process: We handle all dealer reporting with the IRS, ensuring you’re fully compliant without extra work on your part (as long you confirm you qualify!).

• Clear Listings: Vehicles that qualify for the tax credit are prominently labeled on our platform, so you can quickly identify eligible models.

For the latest information, please refer to the IRS website as the source of truth for used electric vehicle tax credit details.