Imagine cruising down the sunny streets of Atlanta in your sleek, eco-friendly electric vehicle (EV). The breeze is light, the skies are clear, and your conscience is even clearer, knowing that your choice is helping the planet. But what makes this image even more appealing?

The opportunity to benefit financially from your environmentally conscious decision. In 2024, the Federal Tax Credit for used EVs has become a game-changer for many, offering up to $4,000 in incentives. This is not just a step towards sustainable mobility but also a smart financial move for forward-thinking individuals.

2024 Used EV tax Credits - Everything You Need to Know

2024 Used EV Tax Credit: Everything You Need To Know (PDF)

Understanding the Federal Tax Credit

In a world where eco-friendly choices are increasingly rewarded, the 2024 Federal Tax Credit stands out. It applies to pre-owned all-electric, plug-in hybrid, and fuel cell electric vehicles purchased from January 1, 2023. Here’s what you need to know:

  • Credit Amount: 30% of the sale price, capped at $4,000.
  • Nonrefundable Nature: The credit can’t exceed your tax liability and doesn’t carry over to future tax years.

Eligibility Criteria:

  • Purchase of a previously owned, qualified plug-in electric vehicle (PEV) or fuel cell vehicle (FCV).
  • The purchaser should not be the original owner or claimed as a dependent on another person’s tax return.
  • The credit has not been claimed for another used clean vehicle within three years before the purchase.
  • Income thresholds apply, varying based on filing status.

Vehicle Requirements:

  • Produced by a qualified manufacturer (except for FCVs).
  • Sale price below $25,000.
  • Model year at least two years prior to the purchase year.
  • Vehicles must be primarily used in the United States and have a gross weight under 14,000 pounds.
  • Plug-in electric vehicles (PEVs) need a minimum battery capacity of 7 kilowatt hours.

Sale Qualifications:

  • Purchased from a licensed dealer.
  • Compliance with specific dealer reporting requirements to the buyer and the IRS

The Unexplored Angles of the 2024 Used EV Tax Credit

While many sources cover the basics of the 2024 Used EV Tax Credit, few delve into the less discussed but crucial aspects:

  • Economic Impact: This credit is not only a boon for environmentally conscious consumers but also stimulates the second-hand EV market. It encourages the turnover of vehicles, thereby accelerating the transition to a greener vehicle fleet nationwide.
  • Dealer Compliance: The role of dealers is pivotal. Their registration with the IRS Energy Credits Online and adherence to reporting requirements ensure the smooth processing of the credit. This underscores the importance of buying from reputable dealers.
  • Income Threshold Strategy: Taxpayers can strategically plan their purchase based on their modified AGI of either the current year or the previous year. This flexibility allows for maximizing the credit benefits.
  • International Impact: The requirement that the vehicle must be primarily used in the United States subtly supports domestic EV usage, aligning with broader goals of reducing carbon emissions nationally.
List of Used Plug-in Electric and Fuel Cell Vehicles That Qualify for the Federal Tax Credit
MakeModelModel YearVehicle Type
AudiA3 e-tron2016–2018Plug-in Hybrid
AudiA3 e-tron ultra2016Plug-in Hybrid
AudiA7 TFSI e Quattro2021–2022Plug-in Hybrid
AudiA8 L 60 TFSI e Quattro2021Plug-in Hybrid
AudiA8L PHEV2020Plug-in Hybrid
Audie-tron2019, 2021–2022Electric Vehicle
Audie-tron Sportback2020–2022Plug-in Hybrid
AudiQ5 PHEV2020Plug-in Hybrid
AudiQ5 TFSI e Quattro2021–2022Plug-in Hybrid
BentleyBentayga Hybrid SUV2020–2021Plug-in Hybrid
BMW330e2016–2018, 2021–2022Plug-in Hybrid
BMW330e xDrive2021–2022Plug-in Hybrid
BMW530e2018–2022Plug-in Hybrid
BMW530e xDrive2018–2022Plug-in Hybrid
BMW740e2017Plug-in Hybrid
BMW740e xDrive2018–2019Plug-in Hybrid
BMW745e xDrive2020–2022Plug-in Hybrid
BMWi3 (60 Ah) Sedan2017Electric Vehicle
BMWi3 Sedan2014–2021Electric Vehicle
BMWi3 Sedan with Range Extender2014–2021Plug-in Hybrid
BMWi3s Sedan2018–2021Electric Vehicle
BMWi3s Sedan with Range Extender2018–2021Plug-in Hybrid
BMWi4 Gran Coupe2022Electric Vehicle
BMWi82014–2017Plug-in Hybrid
BMWi8 Coupe2019–2020Plug-in Hybrid
BMWi8 Roadster2019–2020Plug-in Hybrid
BMWiX xDrive502022Electric Vehicle
BMWX3 xDrive30e2020–2021Plug-in Hybrid
BMWX5 xDrive40e2016–2018Plug-in Hybrid
BMWX5 xDrive45e2021–2022Plug-in Hybrid
CadillacELR2014–2016Plug-in Hybrid
ChevroletBolt2017–2021Electric Vehicle
ChevroletBolt EV2022Electric Vehicle
ChevroletBolt EV EUV2022Electric Vehicle
ChevroletSpark EV2014–2016Electric Vehicle
ChevroletVolt2011–2019Plug-in Hybrid
ChryslerPacifica PHEV2017–2022Plug-in Hybrid
Fiat500e2013–2019Electric Vehicle
FordC-Max Energi2013–2017Plug-in Hybrid
FordE-Transit2022Electric Vehicle
FordEscape Plug-in Hybrid2020–2022Plug-in Hybrid
FordF-150 Lightning (Standard, Extended)2022Electric Vehicle
FordFocus Electric2012–2018Electric Vehicle
FordFusion Energi2013–2020Plug-in Hybrid
FordMustang Mach-E2021–2022Electric Vehicle
GenesisG802022Electric Vehicle
HondaClarity Plug-in Hybrid2018–2021Plug-in Hybrid
HyundaiIoniq 52022Electric Vehicle
HyundaiIoniq Electric Battery Vehicle2017–2021Electric Vehicle
HyundaiIoniq Plug-In Hybrid Electric Vehicle2018–2022Plug-in Hybrid
HyundaiKona Electric Vehicle2019–2022Electric Vehicle
HyundaiNexo Blue Fuel Cell Vehicle2019–2022Plug-in Hybrid
HyundaiNexo Fuel Cell Vehicle2019–2022Fuel Cell Vehicle
HyundaiSanta Fe Plug-In Hybrid2022Fuel Cell Vehicle
HyundaiSonata Plug-In Hybrid Vehicle2016–2019Plug-in Hybrid
HyundaiTucson Plug-In Hybrid2022Plug-in Hybrid
JeepGrand Cherokee 4xe2022Plug-in Hybrid
JeepWrangler 4xe2021–2022Plug-in Hybrid
KiaEV62022Electric Vehicle
KiaNiro EV2019–2022Electric Vehicle
KiaNiro PHEV2018–2022Plug-in Hybrid
KiaOptima PHEV2017–2020Plug-in Hybrid
KiaSorento PHEV2022Plug-in Hybrid
KiaSoul EV2015–2020Electric Vehicle
LexusNX Plug-In Hybrid2022Plug-in Hybrid
LincolnAviator Grand Touring2020–2022Plug-in Hybrid
LincolnCorsair Grand Touring2021–2022Plug-in Hybrid
LucidAir (All Models)2022Electric Vehicle
Mercedes-BenzB-Class EV (B250e)2014–2017Electric Vehicle
Mercedes-BenzEQB SUV (All Models)2022Electric Vehicle
Mercedes-BenzEQS Sedan (All Models)2022Electric Vehicle
Mercedes-BenzGLC350e 4matic2018–2019Plug-in Hybrid
Mercedes-BenzGLC350e 4matic EQ2020Plug-in Hybrid
Mercedes-BenzGLE550e 4matic PHEV2016–2018Plug-in Hybrid
Mercedes-BenzS550e PHEV2015–2017Plug-in Hybrid
Mercedes-BenzS560e EQ PHEV2020Plug-in Hybrid
MINICooper S E Countryman ALL42018–2022Plug-in Hybrid
MINICooper S E Hardtop2020–2022Electric Vehicle
Mitsubishii-MiEV2012–2014, 2016–2017Electric Vehicle
MitsubishiOutlander PHEV2018–2022Plug-in Hybrid
NissanLeaf (All Models)2011–2022Electric Vehicle
PolestarPolestar 12020–2021Plug-in Hybrid
PolestarPolestar 22021–2022Plug-in Hybrid
PorscheCayenne E-Hybrid (All models)2015–2021Plug-in Hybrid
PorscheCayenne E-Hybrid (All Models)2022Plug-in Hybrid
PorschePanamera E-Hybrid (All models)2014–2016, 2018–2021Plug-in Hybrid
PorschePanamera E-Hybrid (All Models)2022Plug-in Hybrid
PorscheTaycan (All EV Models)2020–2021Electric Vehicle
PorscheTaycan (All Models)2022Electric Vehicle
RivianEDV 7002022Electric Vehicle
RivianR1S2022Electric Vehicle
RivianR1T2022Electric Vehicle
smart USACabrio EV2013–2015, 2017–2018Electric Vehicle
smart USACoupe EV2013–2018Electric Vehicle
smart USAEQ Fortwo Cabrio2019Electric Vehicle
smart USAEQ Fortwo Coupe2019Electric Vehicle
SubaruCrosstrek Hybrid2022Plug-in Hybrid
SubaruCrosstrek Plug-In Hybrid2019–2021Plug-in Hybrid
TeslaModel 32017–2022Electric Vehicle
TeslaModel S2012–2021Electric Vehicle
TeslaModel X2016–2021Electric Vehicle
TeslaModel Y2020–2022Electric Vehicle
TeslaRoadster2009–2011Electric Vehicle
ToyotaMirai2016–2022Fuel Cell Vehicle
ToyotaPrius Prime Plug-In Hybrid2017–2022Plug-in Hybrid
ToyotaRAV4 EV2012–2014Electric Vehicle
ToyotaRAV4 Prime Plug-In Hybrid2021–2022Plug-in Hybrid
Volkswagene-Golf2015–2019Electric Vehicle
VolkswagenID.4 (All Models)2021–2022Electric Vehicle
VolvoC40 Recharge2022Electric Vehicle
VolvoS602019–2022Plug-in Hybrid
VolvoS902018–2022Plug-in Hybrid
VolvoV602020–2022Plug-in Hybrid
VolvoXC40 Recharge2021–2022Electric Vehicle
VolvoXC602018–2022Plug-in Hybrid
VolvoXC902016–2022Plug-in Hybrid

Conclusion

The 2024 Used EV Tax Credit is much more than a simple money-saving opportunity. It marks a significant shift towards more sustainable living choices. This incentive makes electric vehicles more affordable for more people, underlining the power of personal decisions in contributing to environmental protection. As we adapt to these changes, it’s worth pondering: what other creative measures could speed up our move toward a cleaner and more environmentally friendly future?

Click here to learn more about the Federal Tax Credits for Pre-owned Plug-in Electric and Fuel Cell Vehicles.