2024 Electric Vehicle (EV) Credit Changes

2024 (tax season 2025) brings about some changes for those looking to claim the Clean Vehicle Credit. See below for new details.

Bullet Point Summary

• Form 15400: Required to claim Clean Vehicle and Previously Owned Clean Vehicle Credits.
• Clean Vehicle Credit (Individuals): Up to $7,500 for eligible new EVs and PHEVs.
• Previously Owned Clean Vehicle Credit (Individuals): Up to $4,000 for eligible used EVs and PHEVs.
• Commercial Clean Vehicle Credit (Businesses): Up to $40,000 for vehicles meeting commercial use criteria.
• Eligibility: Depends on income limits, vehicle type, price caps, and usage requirements.
• MAGI Flexibility: Taxpayers can use MAGI from the current or previous tax year to qualify.
• Filing: Individuals attach Form 15400 to Form 1040; businesses file it with their corporate or partnership returns.

Key Details About Form 15400

• Purpose: Form 15400 is used to claim the Clean Vehicle Credit or the Previously Owned Clean Vehicle Credit.
• Credits Overview:
  • Clean Vehicle Credit: For individual taxpayers purchasing new electric or plug-in hybrid vehicles. Maximum credit: $7,500.
  • Previously Owned Clean Vehicle Credit: For individuals purchasing eligible used EVs or PHEVs. Maximum credit: $4,000 or 30% of the sale price (whichever is less).
  • Commercial Clean Vehicle Credit: For businesses purchasing vehicles for commercial purposes. Maximum credit: $40,000 based on vehicle weight and classification.
• Required Information for Form 15400:
  • Vehicle Identification Number (VIN).
  • Vehicle make, model, and year.
  • Certification from the manufacturer confirming eligibility.
  • Purchase documentation, including date and price.

Eligibility Criteria

• Clean Vehicle Credit (Individuals):
  • Vehicle must be new and primarily used in the U.S.
  • MSRP limits: $55,000 for cars, $80,000 for vans, SUVs, and trucks.
  • Income limits: MAGI below $300,000 (joint filers), $225,000 (heads of household), $150,000 (single filers).
  • Taxpayers can use MAGI from the year the vehicle is placed in service or the prior year.
• Previously Owned Clean Vehicle Credit (Individuals):
  • Vehicle must be at least two years old.
  • Purchase price must not exceed $25,000.
  • Must be purchased from a licensed dealer.
  • Income limits: MAGI below $150,000 (joint filers), $112,500 (heads of household), $75,000 (single filers).
  • Taxpayers can use MAGI from the year the vehicle is purchased or the prior year.
• Commercial Clean Vehicle Credit (Businesses):
  • Vehicle must be used for commercial purposes and meet weight/emissions criteria.
  • No income limits, but vehicles must comply with usage requirements.

Filing Requirements

• Individuals: Attach Form 15400 to Form 1040.
• Dealer Reporting: Dealers must provide buyers with credit eligibility information starting in 2024.