Used Clean Car Credit

As the popularity of electric vehicles (EVs) continues to rise in the Sterling area, many drivers are looking for ways to make their EV purchases even more affordable. One option to consider is the used clean car credit, a pre-owned electric vehicle federal tax credit designed to provide savings for owners of electric vehicles. In this article, we will explore the details of the used EV clean car credit and who qualifies for this financial incentive.

What is the Used Clean Car Credit?

The used clean car credit is a federal tax credit that applies to the purchase of pre-owned electric vehicles for Loudoun County drivers. It offers a significant cost reduction for qualified buyers, making EV ownership more accessible and affordable. The credit is equal to 30% of the sales price, up to a maximum of $4,000.

What Vehicle Qualifies for the Used Clean Car Credit?

To be eligible for the used clean car credit, you must meet certain criteria. Here's what you need to know about the vehicle for the pre-owned electric vehicle federal tax credit:

• The sale price of the vehicle must be $25,000 or less.
• The vehicle must be two years older than the current calendar year. For example, in 2023, the vehicle should be from 2021 or older.
• The vehicle must not have been transferred to a qualified buyer after August 16, 2022.
• The vehicle should have a gross vehicle weight rating of less than 14,000 pounds.
• It must be an eligible fuel cell vehicle (FCV) or plug-in electric vehicle (EV) with a battery capacity of at least seven kilowatt hours.
• The vehicle should be primarily used in the United States.

Who Qualifies For The Used EV Clean Car Credit?

1. You must be an individual who purchased the vehicle for personal use and not for resale purposes. This credit is specifically designed to benefit individual buyers of pre-owned electric vehicles.
2. To be eligible for the used clean car credit, you should not be the original owner of the vehicle. This ensures that the credit is targeted toward second-hand electric vehicles.
3. You cannot be claimed as a dependent on someone else's tax return. This requirement ensures that the credit is available to independent taxpayers who have personally purchased and owned the vehicle.
4. You should not have claimed another used clean vehicle credit within the three years preceding the purchase date. This rule prevents individuals from taking advantage of the credit repeatedly in a short period.
5. Your modified adjusted gross income (AGI) must not exceed certain thresholds to qualify for the credit. The AGI limits for eligibility are as follows:
• $150,000 for married individuals filing jointly or surviving spouses
• $112,500 for heads of households
• $75,000 for all other filers

To claim the used clean car credit, you need to complete Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit, and include it with your tax return for the year you took possession of the vehicle. Make sure to provide the vehicle identification number (VIN) on the form.

While exploring EV incentives, it's important to mention while there is no specific DC EV tax credit for electric vehicle buyers, one of the most significant incentives is the state tax exemption for vehicles with a fuel rating that meets or exceeds 40 MPG. By purchasing an electric vehicle or high-efficiency vehicle, you are eligible for exemption from the vehicle excise tax.

Take Advantage Of The Used EV Clean Car Credit at MINI or Sterling

At MINI of Sterling, we are dedicated to helping our DC Metro area customers make informed decisions about their EV purchases. As a leading dealership for shoppers in or around Dulles Airport, we offer a wide range of pre-owned electric vehicles that qualify for the used EV clean car credit. Additionally, our knowledgeable team can provide information about the pre-owned electric vehicle federal tax credit and the DC EV tax incentives.