In the market for an electric vehicle? Here's why 2024 might be the year to buy

If you've been in the market for an electric vehicle, 2024 might be your year to buy one since the Treasury Department has made the “new clean vehicle” tax credit much easier to obtain in 2024.

Americans wanting to claim the tax credit, worth up to $7,500, will now be able to do so at the point of sale instead of having to wait until they file their tax returns.

That means participating dealerships will now be able to directly apply the $7,500 tax break on an electric vehicle purchase price either for a down payment or as a cash payment to buyers.

The changes also allow taxpayers to claim a "previously owned clean vehicle” tax credit of up to $4,000 when buying used EV models.

Who can claim the tax credit?

According to the U.S. Department of Energy, to claim the tax credit taxpayers must buy the EV for their personal use and not for resale. The vehicle must also be used primarily in the U.S.

To claim the credit, the adjusted gross income (AGI) of the taxpayers must not exceed $300,000 for married couples filing jointly, $225,000 for heads of households and $150,000 for all other filers.

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What vehicles qualify for the EV tax credit?

Here are the EVs that qualify for the full $7,500 tax credit:

What vehicles qualify for the partial EV tax credit ($3,750):