December 12, 2022 | Posted in:

New Electric Vehicle and Energy Tax Credits

Planning to reduce your carbon footprint? Tax incentives for purchasing clean (electric) vehicles and installing high-efficiency home improvements have been extended and updated.

Clean Vehicle Credit and New Limitations

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
  • Up to $7,500 for purchase of a new clean vehicle.
  • Up to $4,000 for purchase of a used clean vehicle.
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
  • Beginning in 2024, taxpayers can elect to apply the credit up-front at the dealer or as a credit on the income tax return.
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
  • “New” clean vehicles are those assembled in North America after August 16, 2022.
  • As of 2023, a set percentage of battery components and source materials must be recycled, mined, or manufactured in the U.S.
  • The manufacturer’s production threshold of 200,000 vehicles is eliminated as a disqualifier as of 2023.


Energy Efficient Home Improvement Credit

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.


Consult with a CPA for Energy Credit Tax Planning

More details are coming about how to obtain these credits, so before making any energy-related purchase decisions, view the full infographic and video on our website or reach out to an Alloy Silverstein advisor.


New Clean Vehicle Credit Summary [Infographic]

Clean Vehicle Tax Credit Summary in Inflation Reduction Act 2022

Download our infographic for a high-level overview at the new Clean Vehicle Tax Credit.

Download PDF


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.
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