Clean Vehicle Tax Credits
Clean Vehicle Credit (30D)
- Maintains the existing $7,500 consumer credit for the purchase of a qualified new clean vehicle, including electric vehicles, plug-in hybrids, and hydrogen fuel cell vehicles.
- Credit is reduced or eliminated if a certain percentage of the critical minerals utilized in battery components are not extracted or processed in the U.S. or a Free Trade Agreement country or recycled in North America. The percentage required increases from 40% in 2024 to 80% in 2026.
- Credit is reduced or eliminated if EV is not assembled in North America or if the majority of battery components are sourced outside of North America. The percentage increases from 50% in 2024 to 100% in 2028.
- Implements a maximum of $80,000 per vehicle for vans, SUVs and pickups and $55,000 for other vehicles.
- Implements an income eligibility limit of $150,000 or $300,000 for joint filers.
- Eliminates the previous manufacturer quota, which phased out the tax credit for manufacturers as they neared 200,000 clean vehicles sold.
- Some models of Tesla, General Motors, and the most popular EV brands would now qualify for the tax credit.
New Previously Owned Clean Vehicle Credit (25E)
- Creates a consumer tax credit for the purchase of previously owned clean non-commercial vehicles, including electric vehicles and plug-in hybrids. Credit is equal to the lesser of $4,000 or 30% of the vehicle cost.
- Sets a maximum sale price of $25,000. The model must be at least 2 years older than the year of sale.
- Implements an income eligibility limit of $75,000 or $150,000 for joint filers.
New Commercial Clean Vehicle Credit (45W)
- For class 1-3 (under 14,000 lbs.) vehicles for commercial use, creates a $7,500 tax credit tax for the purchase of electric vehicles or other qualified clean vehicles.
- For class 4 and above (over 14,000 lbs.) vehicles for commercial use, increases the credit to $40,000.
Extension of Alternative Fuel Refueling Property Credit (30C)
- Extends tax credit for alternative fuel refueling property credit to property placed into service before 2033.
- Increases the tax credit to 30% of the cost of alternative fuel refueling property up to $100,000.
- Includes Direct Pay and Transferability.”
