Electric Vehicle Credits

The Inflation Reduction Act of 2022 implemented and changed many of the clean energy credits available to both individual and business taxpayers. The electric vehicle (EV) credit is available for individual taxpayers with adjusted gross income of less than $300k for married taxpayers and $150k for single taxpayers. For a vehicle to qualify, it must be purchased new for personal use, and must have a battery capacity of at least 7kWh, and have a gross vehicle weight rating of less than 14,000 lbs. It also must be made by a qualified manufacturer, and undergo final assembly in North America. Lastly, the manufacturer's suggested retail price must be less than $80,000 for SUV's and pick-up trucks, and $55,000 for other vehicles. If a vehicle meets all these requirements, it could be eligible for a credit of up to $7,500. Additionally, there is a Colorado credit of up to $5,000. The requirements are complex, so be sure to do your research before purchasing a new EV! For more information, visit energy.gov and search for clean vehicle credits.