Used EV tax credits will soon become a reality, as confirmed by IRS (Internal Revenue Service).
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A customer prepares to charge his Tesla electric vehicle (EV) after parking in a bay for electric vehicles at a supermarket in north London on November 18, 2020. - Britain will ban petrol and diesel vehicle sales from 2030 as part of a 10-point plan for a "green industrial revolution" to be unveiled Wednesday by Prime Minister Boris Johnson.
The tax collection agency explained that tax credits would soon be applicable to 2nd-hand EV purchases.
On Monday, Dec. 12, IRS issued a new revenue procedure for the modified EV tax credit parts. Among these changes is the availability of tax credits for used electric vehicles.
How to Get Used EV Tax Credit?
According to Bloomberg Tax's latest report, used EV purchases can soon have $4,000 or 30% tax credits on the sales prices.
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Electric vehicles are displayed before a news conference with White House Climate Adviser Gina McCarthy and U.S. Secretary of Transportation Pete Buttigieg about the American Jobs Plan and to highlight electric vehicles at Union Station near Capitol Hill on April 22, 2021 in Washington, DC.
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The used EV tax credits will only be active in 2023. If you are interested in purchasing a 2nd-hand unit by that time, here are the qualifications you need to have to get the $4,000 tax credit:
- The used EV must be purchased from a dealer.
- The used EV must cost less than $25,000.
- The used EV should be a first-transfer unit.
- The used EV must be at least two years old.
- The used EV buyer should have a modified gross income not exceeding $75,000 for single filers, $112,500 for heads of household, and $150,000 for joint filers.
If you want to learn more details about the upcoming tax credits for used electric vehicle purchases, you can this link.
Top 2nd-Hand EVs Under $25,000
Since one of the qualifications is not exceeding the $25,000 cost, then you need to find used EVs that are in this price range.
US News provided some of the best 2nd-hand EVs that cost $25,000 or less:
2019 Kia Niro EV ($21,431 to $29,734)
- A spacious subcompact electric SUV with a great mile range.
2017 BMW i3 ($21,210 to $29,752)
- A practical electric SUV that has the design of a regular sedan. It offers good acceleration, handling, and a smooth ride experience.
2017 Nissan Leaf ($16,542 to $18,940)
- A great entry-level EV option for those who are new electric car drivers.
Other EV stories we previously wrote:
Recently, the Ford F-150 Lightning EV experienced a price hike of around 9%.
The Honda Accord 2023 gained built-in Google applications.
For more news updates about EVs and other zero-emission vehicles, keep your tabs open here at TechTimes.
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