Blog / Electric

The New EV Tax Credit Has Many Requirements

EV Tax Credit & the 2023 Nissan Leaf

There has been a lot of confusion about 2023’s new federal EV tax credit law.  First of all, when it comes to the tax code, many of us find it beyond confusing.  That is why a lot of people rely on tax professionals to help them prepare their annual tax returns.  Well the new EV tax credit won’t disappoint you, it is extremely confusing.  

So What Exactly Is The Electric Vehicle Tax Credit? 

The electric vehicle tax credit is a nonrefundable tax credit. It is offered to taxpayers who purchase a qualifying new electric vehicle or plug-in hybrid vehicle. It can also be used on qualifying used electric vehicles.  A nonrefundable tax credit will lower your tax liability by the credit amount. However, it can only be used to offset taxes owed. If you do not owe taxes and are receiving a refund, you can not use the tax credit.  Taxpayers can only claim one credit per vehicle.

The new vehicle EV tax credit is worth up to a total of $7,500. It consists of a $3,750 tax credit for the battery requirement and a $3,750 tax credit for the critical minerals requirement. The new electric vehicle must meet several other qualifications in order to qualify the full EV tax credit.

You may also qualify for up to $4,000 tax credit on qualifying used electric vehicles. There is a maximum limit of 30% of the sales price of a used EV.

How Will I Know If I Qualify For The Tax Credit?

First, the vehicle you are purchasing must qualify for the tax credit.  The vehicle must meet several criteria such as MSRP, final assembly requirements, and battery & critical minerals requirements.  The IRS urges taxpayers to use its tool for the most up to date information on the tax credit and vehicle requirements.  You can now consult the FuelEconomy.gov website for the latest information.

The purchaser of the electric vehicle must also qualify for the tax credit.  The new law sets limits on the modified adjusted gross income for taxpayers in order to qualify for the tax credit.  If both the vehicle and the taxpayer meet the requirements for the tax credit, you must file IRS Form 8936 with your tax return to claim the EV tax credit.

Wallace Nissan Is Here To Help

Let the sales professionals at Wallace Nissan in Stuart help answer any questions you may have on new or used electric vehicles and plug-in hybrids.  You can also find answers to many of your questions at the Wallace Nissan EV Center.  Ready to explore a new or used electric vehicle, contact Wallace Nissan today.

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Electric Vehicle Driving With Nissan

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2022 Nissan Ariya parked out front Wallace Nissan dealership in Stuart, FL.

2022 Nissan Ariya Pricing, Review, and Specs

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Thalia Profitt with happy customer

Salesperson Gives Exceptional Customer Service

Thalia Profitt, salesperson at Wallace Nissan in Stuart, FL, gives exceptional customer experience. Recently, Thalia went the extra mile with her customer, John, in his recent car purchase. After receiving this great service, John left this review of Thalia: "I cannot recommend Thalia Profitt at Wallace Nissan highly enough. I live about 150 miles away from Stuart, so I needed a salesperson who was going to be completely honest and transparent with me before I made the trip. Thalia was exactly that. She answered every single question I had, from specific details about the car to warranty information, and worked hard to get me the best price possible. But what really sets her apart is her service. Since I was coming from far away, I took a train to the nearest station, and Thalia willingly offered to pick me up! That is 'above and beyond' service. She is trustworthy, genuine, and by far the best car salesperson I’ve ever worked with. If you want a stress-free buying experience, go see Thalia! You won’t be disappointed!" This is the type of experience all customers would love to have, and Thalia provides this type of customer service with all of her lucky customers. Stop in to Wallace Nissan and ask for Thalia, you won't be disappointed. Looking For A New Nissan Vehicle If you are in the market for a new Nissan vehicle or used car, look no further than Wallace Nissan in Stuart. Let the professional sales staff at Wallace Nissan give you an experience like the one above. If you already are a Nissan owner, schedule your next service appointment at Wallace Nissan. You will receive the same great service.