The DoE notes that “the supply of the credit score will rely on a number of components, together with the car’s MSRP, its ultimate meeting location, battery element and/or essential minerals sourcing, and your modified adjusted gross earnings (AGI).”
Whereas most of those components decide whether or not the car is eligible for tax credit within the first place, the person purchaser should additionally qualify. Per the DoE, patrons should purchase the car for their very own use and primarily drive it within the U.S. As well as, your AGI should not exceed $300,000 for {couples} submitting collectively, $225,000 for heads of households, or $150,000 for all different filers. The MSRP should additionally fall beneath the utmost threshold set by the invoice (be aware that vacation spot and dealing with charges, in addition to any seller add-on equipment, taxes and different charges will not be included within the MSRP).
All of those guidelines apply to patrons or leasees of latest electrical autos. There are additionally tax credit obtainable for used EVs and PHEVs — a full checklist and qualifying info can be found on the DoE’s web site.
There additionally could also be a loophole for consumers seeking to lease (relatively than purchase) an EV or PHEV that will not be on this checklist. For full particulars, take a look at our article in regards to the ins and outs of electrical car tax credit.