The deadline for claiming up to $7,500 in EV Tax Credit is coming in five days. In this article, read and find out who qualifies to receive these electric vehicle tax credits!Owners of electric vehicles have only five days left to claim up to $7,500 in EV Tax Credit before the government blocks the access to the tax credits on April 18. This means that owners of electric and hydrogen-powered cars and plug-in hybrids must meet certain requirements to be able to receive the EV Tax Credit.
According to Shimkus, the distribution of the EV Tax Credit comes from the Inflation Reduction Act (IRA) in 2022. The IRA reportedly intends to reduce the costs of energy for consumers and small businesses while still creating jobs as the country’s economy and manufacturing sectors develop.
Who qualifies for the EV Tax Credit?
According to Parys, to be able to receive the EV Tax Credit, a car owned must be less than $25,000 and must be older than 2 years. The car must also have been bought from a licensed dealer and the vehicle and its parts manufactured in the U.S. itself. If the owner is a single taxpayer, they must earn an income below $75,000 and $150,000 for joint taxpayers who are married.
Nonetheless, an owner can take advantage of a loophole in the eligibility requirements if they lease the car. Owners who do not meet the requirements may also purchase an electric or hydrogen car that is already used. This is because a used electric vehicle can be eligible for whichever is lower between a $4,000 in EV Tax Credit or 30% of the sale price.