Planning to reduce your carbon footprint? Tax incentives for purchasing clean (electric) vehicles and installing high-efficiency home improvements have been extended and updated.
As part of the Inflation Reduction Act of 2022, new tax credit amounts were introduced for the purchase of both new and used vehicles, as well as eligibility caps based on MSRP, manufacturing restrictions, and the taxpayer’s adjusted gross income.
New Federal Tax Credit for 2023 through 2032 | |
|
|
Qualified Vehicle Price Limits | |
Clean vehicle type | Retail price cap |
New SUV, van or pickup truck | $80,000 |
New Car | $55,000 |
Used Car | $25,000 |
Application of the Clean Vehicle Credit | |
|
|
Eligibility Income Threshold | |
New car AGI limit | Used car AGI limit |
$150,000 for single filers | $75,000 for single filers |
$225,000 for HOH | $112,500 for HOH |
$300,000 if married | $150,000 if married |
Manufacturing and Production Hurdles | |
|
Beginning in 2023, many energy-efficient improvements qualify for a tax credit of up to $1,200 annually. For residential energy property, such as heat pumps, heat pump water heaters, central air conditioners, wood stoves, and certain gas or oil furnaces and boilers, the credit may be as high as $2,000.
Associate Partner
Ren III provides tax, accounting, and advisory services to a broad range of clients, with a specialty for manufacturers, title insurance companies, and professional service providers.
View Ren III's Bio → Follow @R3CPA on Twitter →