Make sure to understand recent changes when buying a clean vehicle.

IR-2023-160, Sept. 1, 2023

WASHINGTON — The Internal Revenue Service reminded consumers considering an automobile purchase to be sure to understand several recent changes to the new Clean Vehicle Credit for qualified plug-in electric drive vehicles, including qualified manufacturers and tax rules.

 The Inflation Reduction Act of 2022 (IRA) made several changes to the new Clean Vehicle Credit for qualified plug-in electric drive motor vehicles, including adding fuel cell vehicles. The IRA also added a new credit for previously owned and commercial clean vehicles. Before taxpayers purchase a clean vehicle, they should be sure that the vehicle was made by a qualified manufacturer. Taxpayers must also meet other requirements such as the modified adjusted gross income limits. To be a qualified manufacturer, the manufacturer must enter into an approved agreement with the Internal Revenue Service and supply the IRS with valid vehicle identification numbers (VINs) that can later be matched at the time of filing to the VIN reported on the return.

When purchasing a new or used clean vehicle, purchasers should check if they are eligible. In addition, for a new or used clean vehicle to be eligible for a Clean Vehicle Credit, the seller must… [Read full article here].

Observation:

Getting the maximum credit for a clean vehicle purchase can be complicated.  However. the inclusion of used vehicles available for the credit creates a greater opportunity for more Taxpayers to take advantage of this credit.  For more information on this credit and other clean energy credits contact Art Chianese, CPA at TAHR Services Inc or schedule a free discovery call today.

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