New EV Federal Credit vs Used EV Credit
The **new EV credit** (up to $7,500) has assembly and battery rules plus MSRP caps. The **used EV credit** (up to $4,000) applies to qualifying pre-owned sales under price and income limits—often transferred at point of sale.
Step by step
1. Check AGI limits
Credits phase out by filing status—confirm before signing.
2. Verify VIN eligibility
IRS lists qualifying models—dealer should attest.
3. Compare out-of-pocket
Credit at checkout vs waiting until tax filing changes cash needs.
New vs used EV credit
Used credit widens access but smaller maximum and stricter sale price cap.
- New EV credit: Higher cap; manufacturing rules; MSRP limits by vehicle type.
- Used EV credit: Lower max; 30% of sale price; model year and price caps.
Use our calculators
Common mistakes
- Assuming all EVs qualify
- Exceeding modified AGI after purchase
FAQ
Can lessors claim the credit?
Consumer purchase rules differ—leases may pass through differently; verify current IRS guidance.