Used EV Tax Credit

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Qualifications for Used EV Tax Credits

As Hertz Car Sales expands its quality pre-owned inventory to electric vehicles, you may wonder if you qualify for tax credits. You've probably heard about EV buyers earning credits that significantly reduce the sales price of electric vehicles. Beginning Jan. 1, 2023, used EVs under $25,000 qualify for a tax credit that equals 30 percent of the sales price, with a maximum credit amount of $4,000. Below are additional details and requirements in order to qualify for the Used Clean Vehicle Credit.

Individual & Household Qualifications

This tax credit is nonrefundable, so you can't get more back on the credit than you owe in taxes, and you can't apply any excess credit to future tax years. Meanwhile, there are added qualifications for the buyer, and these include:

  • You must buy for personal use and not for resale
  • You must not be the original owner
  • You can't be claimed as a dependent on someone else's tax return
  • You can't have claimed another used clean vehicle credit in the previous three years before your purchase date
  • Your modified adjusted gross income (AGI) must not exceed $150,000 for married filing jointly or a surviving spouse; $112,500 for heads of households; $75,000 for all other filers

Vehicle Qualifications

Furthermore, qualifying used EVs must meet the following requirements:

  • Feature a sales price of $25,000 or less, including dealer fees
  • Have a model year of at least 2 years earlier than the calendar year when you buy it
  • Can't have already been transferred after August 16, 2022 to a qualified buyer
  • Have a gross vehicle weight rating of less than 14,000 pounds
  • Be an eligible FCV or plug-in EV with a battery capacity of least 7 kilowatt hours
  • Be for use primarily in the United States

Shop our extensive selection of affordable EVs online, and If you have any additional questions, visit the Hertz Car Sales location nearest you.