Federal Tax Credits and Incentives

Purchasing an electric vehicle (EV) has never been more accessible or rewarding, thanks to the federal tax credits available for both new and used EVs. These credits provide significant savings, making it easier to transition to an electric vehicle while contributing to a cleaner future.

1. The New EV Tax Credit

Save up to $7,500 on a New EV or Fuel Cell Vehicle

The federal tax credit for new EVs provides up to $7,500 in savings, offering a substantial incentive for those purchasing a qualified new electric or fuel cell vehicle (FCV).

Who Qualifies for the New EV Tax Credit?

To be eligible, buyers must:

• Purchase for Personal Use: The vehicle must be for personal or business use, not resale.

• Use Primarily in the U.S.

• Meet Income Requirements:

  • $300,000 for married couples filing jointly.

  • $225,000 for heads of household.

  • $150,000 for single filers.

  • Buyers can use their adjusted gross income (AGI) from the current or prior year, whichever is lower.

Credit Amount

The credit amount depends on the vehicle’s battery capacity and compliance with specific requirements:

• Up to $7,500 total.

  • $3,750 for meeting the critical minerals requirement.

  • $3,750 for meeting the battery component requirement.

These rules are stricter than for used EV tax credits, where there are no minerals or component sourcing requirements.

Vehicle Requirements

To qualify, a new EV must:

• Be purchased new from a licensed dealer.

• Have a battery capacity of at least 7 kWh.

• Be assembled in North America.

• MSRP Limits:

  • $80,000 for vans, SUVs, and pickups.

  • $55,000 for other vehicles.

Note: While Recharged focuses on used EVs, new EV buyers should refer to the IRS website for eligibility details.

2. The Used EV Tax Credit

Save Up to $4,000 on a Used EV

The federal tax credit for used EVs, introduced in 2024, provides up to $4,000 or 30% of the vehicle’s purchase price, whichever is less.

Who Qualifies for the Used EV Tax Credit?

To qualify, buyers must:

• Meet the following income thresholds:

  • $75,000 for single filers.

  • $112,500 for heads of household.

  • $150,000 for married couples filing jointly.

• Use the vehicle for personal purposes, not resale.

• Not have claimed another used clean vehicle credit in the past three years.

Vehicle Requirements

To qualify, the vehicle must:

• Be at least two model years old.

• Have a purchase price below $25,000.

• Have a battery capacity of at least 7 kWh.

• Be sold by a licensed dealer.

• Not have been previously claimed for the tax credit.

How the Used EV Tax Credit Works at Recharged

At Recharged, we specialize in making used EV ownership accessible and affordable:

• Immediate Savings: Eligible buyers can transfer the credit to participating dealers at the time of purchase, effectively lowering the price instantly.

• Hassle-Free Compliance: We handle all dealer reporting to the IRS, ensuring your purchase meets all federal requirements.

• Clear Listings: We prominently label used vehicles eligible for these credits, so you can shop confidently and save with ease.

Why These Credits Matter

The federal EV tax credits make owning an electric vehicle more accessible and affordable, whether you’re purchasing a new or used model. While Recharged focuses on helping drivers maximize savings on used EVs, understanding the full range of incentives can guide your EV journey.

For the latest updates and details on both new and used EV tax credits, visit the IRS website or contact the Recharged team—we’re here to help you drive into the electric future!