Clean Vehicle Credit 30D

What qualifies

The 30D tax credit can be used if you buy a qualified new electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer (those interested in leasing should see the Qualified Commercial Clean Vehicle Tax Credit (45W)).

The vehicle manufacturer’s suggested retail price can’t exceed $80,000 or more for vans, sport utility vehicles, and pickup trucks and $55,000 for all other vehicles. There are restrictions around vehicles’ technical and manufacturing specifications. See what models qualify here. If the model you are interested in does not qualify, you may be able to lease the vehicle and take advantage of the 45W tax credit through your dealership.

Incentive value

The credit is either $3,750 or $7,500 depending on manufacturing specifications. See what models qualify here.

Who is eligible

To qualify, you must:

  • Buy the vehicle for your own use, not resale
  • Use the vehicle primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

  • $300,000 for married filing jointly or a surviving spouse
  • $225,000 for heads of households
  • $150,000 for all other filers

When the credit is available

The 30D credit is available for purchases on or after January 1, 2023, through 2032.

How to claim the credit

You may claim the credit when you file your tax return, or you can transfer your credit to a registered dealer at the time of sale to reduce the amount you pay during purchase.

  1. Check to see if the vehicle you are interested in purchasing qualifies.
  2. Purchase your vehicle.
  3. Get a paper copy of the time-of-sale report when you complete your purchase from the dealer.
  4. You can claim the credit two ways: on your own taxes or by transferring it to a dealer
    1. To claim the credit when you file your taxes, submit Form 8936 when you file your tax return for the year in which you take delivery of the vehicle.
    2. You can also transfer the credit to the dealer when you purchase the vehicle to claim the incentive right away and get a reduction off the purchase price. To do so, follow the dealership’s instructions.

Visit the federal website here for more details on what qualifies and how to use the credit.

Disclaimer: None of the information presented on this website should be considered official legal or financial advice. Please contact a licensed tax professional for additional information.