2024 Clean Vehicle Tax Credit
The 2024 Clean Vehicle Tax Credit is $7,500.
Effective 2024-01-01Source: Credits for new clean vehicles purchased in 2023 or after (IRS)Verified 2026-08-30
Compared with 2023
Every figure on this page is unchanged from 2023.
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Maximum credit | $7,500 | $7,500 | +$0 (+0.0%) |
Who it applies to
The credit is available to individuals and their businesses. The buyer must buy the vehicle new and for their own use rather than for resale, and use it primarily in the United States. The vehicle must meet a battery capacity floor and a weight ceiling, be made by a qualified manufacturer, undergo final assembly in North America, meet the critical mineral and battery component requirements and stay under a manufacturer suggested retail price cap that differs for vans, sport utility vehicles and pickup trucks. Modified adjusted gross income limits apply and differ by filing status, and the buyer may use the figure from the year of delivery or the year before, whichever is less. Form 8936 is filed with the return for the year of delivery whether or not the credit was transferred at the point of sale.
What changed this year, and why
The maximum is unchanged for 2024. The IRS states that a buyer may qualify for a credit of up to $7,500 under Internal Revenue Code Section 30D for a new, qualified plug-in electric vehicle or fuel cell electric vehicle, the same ceiling as 2023, and the critical mineral and battery component requirements that decide whether a vehicle reaches it are the same as well. What changed is how the credit can be taken: a buyer may transfer it to the dealer when the vehicle is placed in service instead of waiting to claim it on a return. The credit was later terminated for vehicles acquired after September 30, 2025.
Common questions
- What is the clean vehicle tax credit for 2024?
- Up to $7,500. The IRS states that a buyer may qualify for a credit of up to $7,500 under Internal Revenue Code Section 30D for a new, qualified plug-in electric vehicle or fuel cell electric vehicle. A vehicle reaches the full amount only if it meets both the critical mineral and the battery component requirement.
- Did the clean vehicle credit change from 2023 to 2024?
- The maximum did not. It is up to $7,500 in both years, and the vehicle requirements behind it are the same. The practical change is that the credit can be transferred to the dealer when the vehicle is placed in service, so the buyer can see it at the point of sale rather than waiting for a refund.
- Does the 2024 credit still exist?
- Not for vehicles acquired later. The IRS states that the New Clean Vehicle Credit is not available for vehicles acquired after September 30, 2025. A vehicle acquired in 2024 and placed in service is unaffected by that.
- How is the 2024 credit claimed?
- On Form 8936, Clean Vehicle Credits, filed with the tax return for the year the buyer takes delivery, with the vehicle identification number. This is true whether the credit was transferred when the vehicle was placed in service or is being claimed on the return.
Every amount on this page is a published figure rather than yours. The What the vehicle costs after the credit takes the number you enter and works it out against them, showing which published figure it used.
The credit ends for vehicles acquired after September 30, 2025
The New Clean Vehicle Credit applies only to vehicles acquired on or before Sept. 30, 2025. For vehicles placed in service after that date, the taxpayer must still have acquired the vehicle by the deadline — for example, by entering into a binding written contract and making a payment by Sept. 30, 2025. A vehicle is placed in service when the taxpayer takes possession of it, which may differ from the acquisition date. Once this date passes, no credit is available for any vehicle acquired later, regardless of when it is placed in service.
The New Clean Vehicle Credit is not available for vehicles acquired after Sept. 30, 2025.
Credits for new clean vehicles purchased in 2023 or after (IRS)
The income limits, and the two years you may choose between
Under the federal Clean Vehicle Tax Credit, your modified adjusted gross income must stay within specific limits for the year you choose to use. You may pick either the year you take delivery of the vehicle or the year before it — whichever produces the lower income figure. The thresholds are $300,000 for married couples filing jointly or a surviving spouse, $225,000 for heads of households, and $150,000 for all other filers. If your income falls below the applicable limit in just one of those two years, you are still eligible. This two-year look-back gives taxpayers flexibility: a raise or a one-time gain in one year does not necessarily disqualify you, as long as the other year stays within the cap. The credit itself can be as much as $7,500 for a qualifying vehicle.
In addition, your modified adjusted gross income (AGI) may not exceed: $300,000 for married couples filing jointly or a surviving spouse $225,000 for heads of households $150,000 for all other filers
Credits for new clean vehicles purchased in 2023 or after (IRS)
The sticker price ceiling the vehicle must stay under
The federal Clean Vehicle Tax Credit imposes a sticker price ceiling based on vehicle class. The manufacturer suggested retail price can be no more than $80,000 for vans, sport utility vehicles, and pickup trucks, and no more than $55,000 for all other vehicle types. MSRP means the price the manufacturer suggests, including factory-installed options, accessories, and trim, but it does not include destination fees. Importantly, this is the manufacturer's suggested price — not necessarily what you actually pay at the dealership. Even if you negotiate a lower purchase price, a vehicle whose MSRP exceeds the cap for its class is ineligible. You can find the MSRP, along with battery capacity, weight, and final assembly location, on the vehicle's window sticker. A qualifying vehicle may earn a credit of up to $7,500 if it also meets every other requirement.
In addition, the vehicle's manufacturer suggested retail price (MSRP) can't exceed: $80,000 for vans, sport utility vehicles and pickup trucks $55,000 for other vehicles
Credits for new clean vehicles purchased in 2023 or after (IRS)
What the vehicle itself has to be
For the federal Clean Vehicle Tax Credit, the vehicle itself must satisfy several physical and manufacturing criteria. It must have a battery capacity of at least 7 kilowatt hours and a gross vehicle weight rating below 14,000 pounds. It must be produced by a qualified manufacturer and undergo final assembly in North America. As of April 18, 2023, it must also meet the critical mineral and battery component requirements that determine the credit's size. The vehicle must be purchased new — a used vehicle follows a different set of rules. In addition, the seller must report required information to both you and the IRS at the time you take possession; without that report, the vehicle is not eligible. You can check battery capacity, weight, and final assembly location on the vehicle's window sticker, which lists the assembly point by name.
To qualify, a vehicle must: Have a battery capacity of at least 7 kilowatt hours Have a gross vehicle weight rating of less than 14,000 pounds Be made by a qualified manufacturer Undergo final assembly in North America Meet critical mineral and battery component requirements (as of April 18, 2023)
Credits for new clean vehicles purchased in 2023 or after (IRS)
Why some vehicles get $3,750 and not $7,500
Under the federal Clean Vehicle Tax Credit, vehicles placed in service on or after April 18, 2023, must satisfy separate critical mineral and battery component tests to determine the credit amount. A vehicle that meets only the critical minerals requirement earns up to $3,750. A vehicle that meets only the battery components requirement also earns up to $3,750. A vehicle that satisfies both requirements earns the full credit of up to $7,500. A vehicle that meets neither requirement is not eligible for any credit at all. These rules apply in addition to every other vehicle qualification, such as battery capacity, weight, assembly location, and MSRP limits. Taxpayers can check whether a specific vehicle meets these supply-chain requirements by visiting fueleconomy.gov, where eligible models are listed.
For vehicles placed in-service April 18, 2023, and after: Vehicles will have to meet all of the same criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to: $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
Credits for new clean vehicles purchased in 2023 or after (IRS)
The credit cannot exceed the tax you owe
The federal Clean Vehicle Tax Credit is nonrefundable, meaning the credit cannot reduce your tax liability below zero. If the credit would otherwise be $7,500 but you owe less than that in taxes for the year, you receive only what you owe — the remainder is not refunded to you. You also cannot carry any unused portion of the credit forward to a future tax year. There is one exception: if you elect to transfer the credit to the dealer at the point of sale, the dealer applies it as a down payment or price reduction, and the nonrefundable limitation does not apply to you at tax time. For everyone who does not make that transfer election, the credit is strictly limited to the amount of federal tax you owe in the year you take delivery of the vehicle.
If you do not transfer the credit, it is nonrefundable when you file your taxes, so you can't get back more on the credit than you owe in taxes.
Credits for new clean vehicles purchased in 2023 or after (IRS)
How to claim it, and the report the dealer owes you
To claim the federal Clean Vehicle Tax Credit, you must file Form 8936, Clean Vehicle Credits, with your federal income tax return for the year in which you take delivery of the vehicle. The form requires the vehicle's VIN. At the time you take possession, the dealer must provide you with a paper time-of-sale report confirming that the dealer has sent the required purchase information to the IRS. Keep this report in your records. If the dealer fails to file that report, or if you never receive a copy, you may not be eligible to claim the credit. Even if you transferred the credit to the dealer at the point of sale, you still must file Form 8936 when you file your return. The maximum credit available for a qualifying vehicle is $7,500.
To claim the credit, file Form 8936, Clean Vehicle Credits with your tax return.
Credits for new clean vehicles purchased in 2023 or after (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Credits for new clean vehicles purchased in 2023 or after (IRS)
- Maximum credit
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).