The Clean Vehicle Credit (for 2023 and forward)

[@encouragesolutions2595]

My daughter bought a new Rav4 Toyota hybrid in October 2023 for $30000. Does she have to claim pro-rate per annum eg Oct-Dec in tax year 2023 and 9 months Jan-Sep in 2024 or can the $7500 be claimed in full in 2023 tax year?

[@TheTaxGeek]

Non-plug-in hybrids do not qualify for the Clean Vehicle Credits. But if the vehicle did qualify, you would claim the entire $7,500 on your 2023 tax return.

[@joshgates2671]

Do I have to claim the clean vehicle tax credit in 2023 tax return or can I do it next year? I purchased a vehicle on November 2023. I read "The value of the new clean vehicle tax credit has been extended through December 31, 2032, adding nine years of availability". Does that mean i can even claim it in 2025?

[@TheTaxGeek]

No, the Credit has to be claimed in the year you purchased the vehicle. The extension of the Credit merely means that the Credit is available to EV purchasers in those years.

[@joshgates2671]

@@TheTaxGeek ahh thank you so much for clearing that up! Much appreciated 👏 couldn't even find that answer on Google.❤️

[@Tif-ww5lr]

Hi! My wife and I just bought a Tesla. We make about 250k combined and have already paid about 18k in federal tax witholdings. Will we not be able to get the full 7500 EV credit since it's non-refundable and we expect a refund this year or does that credit get applied to the income tax we owe which should be around 40k? Thank you for your help!

[@TheTaxGeek]

The Credit is applied to your income tax liability, reducing it by $7,500.

[@jerrymaushard3835]

It doesn’t matter how much you have or have not withheld.