Tax Tip 2023-49: Here’s what taxpayers need to know to claim clean vehicle tax credits

Bookmark and Share Banner
IRS Tax Tips April 12, 2023

Useful Links:

Help For Hurricane Victims

News Essentials

What’s Hot

News Releases

IRS – The Basics

IRS Guidance

Media Contacts

Facts & Figures

Around The Nation

e-News Subscriptions

The Newsroom Topics

Multimedia Center

Noticias en Español

Radio PSAs

Tax Scams/Consumer Alerts

The Tax Gap

Fact Sheets

IRS Tax Tips

Armed Forces

Latest News

IRS Resources

Contact Your Local IRS Office

Filing Your Taxes

Forms & Instructions

Frequently Asked Questions

Taxpayer Advocate Service

Where to File

IRS Social Media


Issue Number:  Tax Tip 2023-49

Here’s what taxpayers need to know to claim clean vehicle tax credits

The Inflation Reduction Act of 2022 made several changes to the tax credits provided for qualified plug-in electric drive motor vehicles, including adding fuel cell vehicles to the tax credit.

Beginning January 1, 2023, eligible vehicles may qualify for a tax credit of up to $7,500. The amount of the credit depends on when the eligible new clean vehicle is placed in service and whether the vehicle meets certain requirements for a full or partial credit.

  • The buyer must meet certain income limitations.
  • The final assembly of a new clean vehicle must occur within North America.
  • The vehicle can’t exceed a manufacturer suggested retail price of:
    • $80,000 for vans, sport utility vehicles and pickup trucks
    • $55,000 for other vehicles

The purchase of a new clean vehicle between 2009 and 2022 may also qualify for a tax credit.

The IRA also added a credit for used clean vehicles, which can equal 30% percent of the sale price up to a maximum credit of $4,000. However, this recent credit doesn’t apply to used clean vehicles purchased before 2023.

Here’s an updated list of frequently asked questions about new and used clean vehicle credits that covers:

  • eligibility rules,
  • income and price limitations,
  • when the new requirements apply, and
  • claiming the credit.

These credits are nonrefundable, so taxpayers can’t get back more on the credit than what they owe in taxes. Plus, the taxpayer can’t apply any excess credit to future tax years.

More information:
Manufacturers and Models of Qualified Used Clean Vehicles
Credits for New Electric Vehicles Purchased in 2023 or After
Credits for New Electric Vehicles Purchased in 2022 or Before
Commercial Clean Vehicle Credit
Credits and Deductions Under the Inflation Reduction Act of 2022


Back to top


FaceBook Logo  YouTube Logo  Instagram Logo  Twitter Logo  LinkedIn Logo

Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit

This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.


This email was sent to [email protected] by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington DC 20535 GovDelivery logo

Similar Posts

Leave a Reply