Clean vehicle credit

Buyers of qualifying plug-in electric vehicles (EVs) may be able to claim a nonrefundable tax credit of up to USD 7,500 under current law. The tax credit phases out once a vehicle manufacturer has sold 200,000 qualifying vehicles. Current law also allows, through 2021, a tax credit of up to USD 8,000 for fuel cell electric vehicles (FCEVs). The base credit amount is USD 4,000, with up to an additional USD 4,000 available based on fuel economy). Heavier FCEVs qualify for a credit of up to USD 40,000.

The Inflation Reduction Act (IRA) amended the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and added a new requirement for final assembly in North America that took effect on August 17, 2022, with additional requirem