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  • Writer's pictureJoseph Witzig, CPA

Tax Credit - Clean Energy Vehicles Purchased in 2023

Updated: Jul 8, 2023

The IRS announced new requirements on April 18th



You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.


Fewer cars are now likely to qualify for the tax break

The stricter requirements are based on "critical minerals" and "battery components." The final assembly of the vehicle must also have been in the United States.



For vehicles placed in service April 18, 2023 and after:

Vehicles will have to meet new critical mineral and battery component requirements:

  • $2,500 base amount

  • Plus $417 for a vehicle with at least 7 kilowatt hours of battery capacity

  • Plus $417 for each kilowatt hour of battery capacity beyond 5 kilowatt hours

  • $3,750 if the vehicle meets the critical minerals requirement only

  • $3,750 if the vehicle meets the battery components requirement only

  • $7,500 if the vehicle meets both

A vehicle that doesn't meet either requirement will not be eligible for a credit.


See this link to see if a vehicle qualifies: https://fueleconomy.gov/feg/tax2023.shtml

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