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.