Car dealers can give buyers an instant rebate for purchasing certain electric vehicles starting in January of 2024, according to neweligible vehicles may qualify for a tax credit of up to $7,500. However, the credit amount will depend on whether an EV and its buyer meet certain requirements, and when a car is actually purchased.
For an electric car to qualify, it needs to have a minimum battery capacity of seven kilowatt hours. Buyers can’t claim the credit if their adjusted gross income exceeds certain thresholds – $300,000 if married and filing jointly, and $150,000 for the majority of single taxpayers. The manufacturer’s suggested retail price for the EV also can not exceed specific price points. For sport utility vehicles and pickup trucks, the cap is $80,000, for example.