CHICAGO – Federal tax credits of up to $7,500 are available for buyers of new all-electric, plug-in hybrid and fuel cell electric vehicles purchased through Sept. 30.
What we know:
Eligibility depends on several factors, including the vehicle’s sticker price, final assembly location, battery sourcing and the buyer’s modified adjusted gross income.
To qualify, buyers must enter into a written contract and make a payment before the Sept. 30 deadline. The credit can be claimed once the buyer takes possession of the vehicle, even if that happens after the deadline.
Pre-owned electric and plug-in hybrid vehicles bought during the same period may qualify for a separate tax credit of up to $4,000. Additional state and local incentives may also be available.
The IRS cautioned that some manufacturers have not yet submitted full details on which models meet current requirements and urged consumers to check for updates before purchasing. Similar credits remain in place for qualifying vehicles purchased before 2023.
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The Source: The information in this report came from the U.S. Department of Energy and the Internal Revenue Service.