What could be more rewarding than contributing to a greener future by investing in an efficient pre-owned electric car? How about pocketing substantial savings while doing so! Thanks to the Inflation Reduction Act of 2022, you could be eligible for up to $4,000 off your next electric vehicle purchase from OC Chief Auto. While typically individuals interested in purchasing a pre-owned electric car would need to apply for this credit from the IRS themselves, we here at OC Chief Auto simplify the process by offering upfront assistance. It’s worth noting that dealers must register with the IRS before providing this upfront benefit, meaning other dealerships might not offer this convenient option to capitalize on the tax credit. Take a moment to review the qualifying terms below and discover how you could potentially save up to 30% on the sale price of an electric car!
To qualify, vehicles must meet the following criteria:
- The total sale price, inclusive of non-government fees (e.g., dealer-imposed shipping and delivery charges), must not exceed $25,000.
- The vehicle must have been manufactured at least two years prior to the year of purchase (for instance, for purchases made in 2024, only models produced in 2022 or earlier are eligible).
- It must either be a fuel cell or plug-in electric vehicle with a minimum capacity of 7 kilowatt hours.
- The vehicle must be intended for use within the United States.
- Its gross weight should not exceed 14,000 pounds.
- It must not have been acquired by another individual since August 16, 2022.
(Note: The $25,000 sale price excludes additional expenses such as taxes, title fees, registration fees, service contracts, GAP waivers, or insurance.)
Interested in another model and uncertain about its eligibility? You can access a comprehensive catalog of qualifying pre-owned models on the U.S. Department of Energy’s fuel economy website.
Specific criteria determine eligibility not only for vehicles but also for buyers. To qualify for the federal tax credit, applicants must:
Purchase the car for personal use, not for resale.
- Not be claimed as a dependent on another individual’s tax return.
- Not have claimed another used EV tax credit within the past three years.
- Not be the original owner of the purchased vehicle.
In essence, if you are purchasing a pre-owned EV for personal use and are not claimed as a dependent, you may meet the requirements!
Additionally, there are income restrictions based on your modified adjusted gross income (MAGI). If you’re unfamiliar with MAGI, you can find more information on the Department of Energy’s website. You will not qualify for the tax credit if your MAGI exceeds:
- $112,500 for heads of household.
- $150,000 for joint filers or spouses.
- $75,000 for all other filers.
If you still have any lingering inquiries, the IRS provides a helpful Frequently Asked Questions page regarding eligibility for this tax credit, which can amount to up to $4,000. Alternatively, feel free to reach out to us at OC Chief Auto where our agents are eager to assist you in determining if you can save up to 30% on your next electric vehicle purchase from us!
