Tax Credit For Electric Vehicles: Get Green for Going Green

The Inflation Reduction Act (IRA), which was just enacted, includes an expanded tax credit for electric vehicles.

The IRA launched a commercial clean vehicle credit for business-use electric vehicles. And it is much better than the credit for personal-use electric vehicles.


This vehicle credit comes with many restrictions, such as:

👉 It’s available only if your adjusted gross income is at most $300,000 (filing jointly, married) or $150,000 (single).
👉 Applies only to electric vehicles with a manufacturer’s suggested retail price below $80,000 for vans, SUVs, and pickup trucks; or $55,000 for other vehicles.
👉 Must pass complex tax law defined North American assembly and sourcing requirements that prevent many electric vehicles from qualifying.

The business-use electric vehicle credit is available for fully electric cars, plug-in hybrid, and fuel cell vehicles.

The maximum credit is $7,500 for electric vehicles with a gross weight rating of less than 14,000 pounds and a whopping $40,000 for electric vehicles with a GVWR of 14,000 pounds or more.

Let’s Talk! ->Schedule Your Free Tax Assessment Here<-