Aug 10, 2022
The EV tax credit might work differently next year under the Inflation Reduction Act. The existing tax credit worth up to $7,500 for new purchases of battery-electric cars and plug-in hybrid vehicles will be extended through 2032. The bill would create a new tax credit of up to $4,000 for used versions of these cars.
Not everyone will qualify for the tax credit, however. New vehicles must be less than $55,000 MSRP for sedans, and less than $80,000 MSRP for SUVs, trucks, and vans.
For single tax filers with an adjusted gross income of greater than $150,000, the credit will not be available. The same goes for married couples filing jointly, who make greater than $300,000. Individual head of households have an income limit of $225,000.