Saving on Your Next Purchase with the Used Clean Vehicle Tax Credit

Saving on Your Next Purchase with the Used Clean Vehicle Tax Credit

Vehicle owners could be eligible for additional tax credits through the Used Clean Vehicle Credit provisions from the IRS as of January 1st, 2023. If you’re considering a clean vehicle purchase, the team at CMA's Colonial Nissan wants to show you how you can use this to your advantage.

Here’s how you can determine your eligibility for the Used Clean Vehicle Credit option this tax year (and beyond).

What is the Used Clean Vehicle Tax Credit (UCVTC)?

The UCVTC is established as of January 1st, 2023. In summary, those who purchase an EV or fuel-cell vehicle (FCV) may be eligible so long as the sticker price is $25,000 or less. The purchase must occur with a licensed dealer in 2023 or any subsequent later year. At this time, any purchases made prior to the start of 2023 are not eligible for the program.

On average, the credit gets you the equivalent of $4,000 — equaling 30% of the sale price.

Who qualifies for the UCVTC?

There are several requirements that the IRS has established for qualification in 2023:

  • You must buy to own. Anyone who purchases a vehicle to resell it will not be considered.
  • You must not be the original owner. You must make the purchase with a licensed dealer to be considered.
  • You must be independent for taxation purposes. To be eligible, you may not be claimed as a dependent on anyone else’s taxes.
  • You cannot stack credits. You cannot have claimed another UCVTC in the previous three years from the purchase date.

Additionally, your AGI cannot exceed $75,000 if you’re filing alone, or $150,000 if you’re filing jointly.

What is the required identifying information for UCVTC eligibility?

There are a few pieces of information that you must have and present in order to be eligible for the Used Clean Vehicle Tax Credit.

These include:

  • Your name and tax ID number
  • The dealer’s name and tax ID number
  • The vehicle’s VIN number (unless there is not one associated with the sold vehicle)
  • The vehicle’s battery capacity information
  • The vehicle’s sale date and price

Your tax professional can confirm any additional requirements you may need when considering claiming this type of credit for the following tax year.

How to file for the Used Clean Vehicle Tax Credit

You’ll need to complete IRS Form 8936, otherwise known as the Qualified Plug-In Electric Drive Motor Vehicle Credit. You’ll submit this form with your tax return from the year of sale, including the VIN listed legibly on your form.

Start your process of eligibility today

Connect with the team at CMA's Colonial Nissan and shop our used EVs for your next ride. Our staff is here to help you ride off the lot in the car of your dreams. For more information and to get started today, please give us a call at 888-607-5930. We look forward to speaking with you soon.

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  1. CMA's Colonial Nissan

    200 Myers Dr.
    Charlottesville, VA 22901

    • Sales: (888) 607-5930
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