Electric Car Tax Credit 2024; Explained in 7 points!
Point-of-Sale Credit: In 2024, you can transfer your tax credit to the car dealer. This means you get a discount right when you buy the car.
Income Limits: To get the full tax credit, single people must earn under $150,000, and married couples under $300,000. Higher incomes get smaller credits.
North American Assembly: The electric car must be made in North America to get the full credit. This rule helps create jobs and boost battery production here.
Battery Sourcing Requirements: Part of the battery's materials must come from North America or a country with a free-trade agreement with the U.S. to qualify for the credit.
New vs. Used EVs: New electric cars can get up to $7,500 in tax credits, while used ones can get up to $4,000. Used cars must meet certain rules.
Not all Manufacturers Qualify: Some electric car makers don't meet battery sourcing rules, so not all qualify for the full credit. Check before buying.
Sales Tax on Full Price: Even with the discount, you still pay sales tax on the car's full price, not the reduced price after the credit.