EV Tax Credits: Everything You Need to Know for 2024 | Eligibility, Incentive Amount & More
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- เผยแพร่เมื่อ 8 ก.พ. 2024
- Looking to take advantage of federal tax credits on your brand new EV? The guidelines are constantly evolving, as are the vehicles eligible to take advantage of the available incentives, and it can all be a bit hard to follow. In this video, Edmunds’ Nick Yekikian does a deep dive into the current state of EV tax credits for 2024, including eligibility requirements both for vehicles and buyers, how much to expect, and more.
Electric Vehicle Tax Credits 2024: What You Need to Know: www.edmunds.com/fuel-economy/... - ยานยนต์และพาหนะ
If you wanted an EV, would you be buying or leasing? Tell us why below!
I’m literally grounding my Bolt EV in a few days. I would gladly buy it instead but its market value is way lower than the residual. Thats too bad. Love the little car.
A lot of dealerships are just lowering their list price to get the consumer to the lot and then at the point of sale if you and the car qualify the elevate the price on the contract. Such a poor practice.
Right to the point! i watched so many video ppl just rambles on and on but this is just great
I was told the $7500 tax rebate is nonrefundable so if you don’t owe $7500 in taxes, you will not get the full 7500. It seems a lot of people tell you different answers to the same question, so who is correct?
There are different answers because the answer depends on how a taxpayer gets the tax credit.
If a taxpayer gets the tax credit at the dealer, then having $7,500 of tax liability is not required. Source: IRS FS-2023-29, page 14, A4 ("The amount of the credit that the electing taxpayer elects to transfer to the eligible entity may exceed the electing taxpayer’s regular tax liability for the taxable year in which the sale occurs, and the excess, if any, is not subject to recapture from the dealer or the buyer.") So someone with $0 tax liability could go to the dealer, buy a qualifying EV, get the $7,500 tax credit money there, and not have to pay back anything to the IRS or anyone in the future.
However, if a taxpayer opts to claim the tax credit on the taxpayer's taxes, then the taxpayer does have to have $7,500 of tax liability because the tax credit, in this scenario, is treated like a nonrefundable tax credit.
Daaang that's good to know
@@sirmontego2 Thanks for sharing that. Guy in the video does a lacksidasical job explaining the different scenarios simply because he wants to gloss over IRS talk...even though it's important to understand the technicalities of how it all works.
people always forget about the most important part of purchasing a car... the loan interest rate. I just bought the BZ4X with 0% interest for 72months, in this economy crisis... 0% interest is worth way more than $7500
THANK YOU SO MUCH.
Hello, very good video, I would like to know if you could help me with a question, I have a big concern, I downloaded my Tesla form, which is the car that I bought was a new vehicle, specifically Model 3 2024, which qualified 7500 for the federal and 4000 for the state. Today I went to do my taxes and I was surprised that the person who does my taxes told me that I was not going to receive my federal of 7500 because I only reported 17,000 dollars on my taxes... I was surprised how true this would be that I didn't qualify to obtain the federal tax because i didn't report so much even though I have my form that I downloaded to claim the 7500 from tesla
Great video, covered all the points I was concerned about. Model 3 Performance calling my name!
So I make $40,000 a year. Never owed any taxes back to the IRS. I always get a refund around $1200 a year. Im single. I want a 2023 white Chevy bolt that’s about $32,000 at most. So do I qualify for the whole $7500 discount? I would take the credit at time of sale instead of waiting. Also does this mean I wont be receiving my $1200 tax refund at all because of this $7500 credit? Or that remains unchanged? Has nothing to do with the EV credit? If I buy it this year in 2024 I put it on my tax forms in February 2025 when I do them? I already did my taxes for 2023 which I did February 2024
Wow nb could answer this
Number on 1:54 is wrong, it should be 300,000 when family filing jointly.
The head of household and joint return caps got switched.
How long do u need to keep the car if you get the used EV $4000 and can you use it to drive Uber?
you didnt cover the 4k for used cars.
Please have more videos with Nick!
I wasn't aware of all the available incentives in late December when I ordered my 2023 Chevy Bolt EV 2LT. The dealership is experiencing some issues with the IRS software and has agreed to hold my vehicle until the issues are resolved. I prefer the dealership to work with the IRS, so I need to. Here's a list of incentives that I'm receiving here in Colorado. The MSRP listing is $32,250 minus $7500 Federal and another $7500 in Colorado, plus a $500 debit card for charging at EVGO , I'm also receiving a $500 military discount from GM, if that's not enough my local power company will pay up to $1000 to help with any electrical up grads need for wiring a charger at my home. that's almost a $50% discount on a new Car buying only $16,250
Sell it for 30k then buy a used corolla and travel the country for a year with the profit!
Can't beat that. 👍🏽
Yeah the IRS online portal is a fuster cluck. Good luck getting the point of sale credit.
Can you get a used vehicle and occasionally use it for rideshare driving? Mixed use, maybe 50/50 business/personal miles and deduct mileage (not actual cost)?
does the tax credit apply to used EVs?
Wooo!! I love this guy!! I was thinking about getting an EV, and this helped me so much understand the buying process a bit more.
Thanks, Nick!! Keep doing great work :)
Where can I buy you ;)
Does that mean any EV on a lease can get the full 7500?
No California rebate - Effective November 8, 2023, CVRP is closed to new applications.
Great video
I'm a low-income (roughly about 44k) buyer and my tax bill usually is a few hundred dollars.so lets say 300. I don't have to pay back the 7200.
Can someone help me with this question?
Example: Used Chevy Bolt is advertised
at dealership for 10,000:
but after the sales tax and
other fee's from the dealer
the cost is more like 11, 500 out the door:
but I also I also wish to purchase an extended warranty
adding another 1500.00 to the total price
bringing the final price to
13,0000, (if I also add the extended warranty)
_________________________________________________
Can I say on the IRS EV used car credit program,
that the cost of the car was
13,000? or do I have to use only the
10,000 price of the car, excluding the sales tax and dealer fee's
and extended warranty cost ?
It doesn’t include the warranty it’s on the MSRP of the vehicle only.
@@threadoflife Are you sure, that answer sounds inaccurate, because I heard the limit was like 25,000 Price for the used EV credit ? I know that sounds low, but that's what I heard, and does the MSRP even change at dealerships between used or new? I've only associated the term MSRP with ''new cars'' not used ?
How about if you are buying a used EV? Tesla says those don’t qualify?
Used EV’s get $4,000
So let me get this straight. if I don’t owe $7500 a year in taxes, the dealer will still deduct it from the price and the government won’t come after the difference?
You are correct. The 2024 rule change makes it possible to receive the EV tax rebate for those who don’t normally have a tax liability(owe) at the end of the year. However finding a dealer that has signed up with the IRS to do the point-of-sale rebate is a different story. It’s my first question when talking to a dealer because I don’t have a tax liability and point of sale rebate is the only way I would close on a phev.
Some of the questions that I am not finding answers are
1. Can I buy more than 1 ev in same year and get 7500
2. Can I sell EV (2023) for which I claimed credit already and then get a tax credit on a new one in 2024.
The solution to the EV vs ICE debate is simple. Remove all tax incentives, subsidies and mandates for both industries and let people make their own choices. I lived through the Arab Oil Embargo which disrupted the US economy and as a result I saw people choose Japanese imports over domestics because they were more economical. The big 3 noticed and followed improving their MPG. I have been seeing a lot of misinformation regarding both which is understandable considering how much money is at stake. I don’t understand why anyone would love or defend either industry, they are both just trying to get you hard earned money and don’t care about you.
Ok what about the used credit
So if you earn more than 150k gross being single you don’t get any benefit by switching to EV?
Just simply get married for a month to qualify😂
It seems to me it would be better to wait and get your $7500 tax refund at the end of the year (if you qualify.) If you take it at time of purchase, the dealer will deduct $7500 from the purchase price of the car but then calculate your term lease payment from that figure which doesn’t necessarily save you $7500 in the end.
You are talking about a lease? Non of this applies to a lease because the dealer always got the rebate when a person leased.
What about second hand purchases? Any tax rebates there?
Only from a dealer.
from Edmunds
@@gmv0553 5. Are there tax credits for used EVs?
The tax credit for used EVs will be calculated based on either 30% of the vehicle's value or $4,000, whichever is less. As we mentioned earlier, there are no assembly requirements or battery component percentages for used EVs and PHEVs. The rules for used EVs went into effect on January 1, 2023, and are as follows:
Price limit for used vehicles
There is a hard eligibility ceiling at a sale price of $25,000 for all used EVs regardless of type.
Income limits for used vehicles
As with new vehicles, the buyer's income is measured by modified adjusted gross income (MAGI). By filing status, the limits are:
Filing status Maximum eligible income (MAGI)
Joint tax returns or surviving spouse $150,000
Head of household $112,500
Individual or any other filing status $75,000
Other eligibility requirements for used EVs
The vehicle must be at least two model years older than the calendar year in which it is purchased.
The used EV tax credit will only apply once in the vehicle's lifetime. Subsequent owners will not be eligible.
Once a buyer has taken the federal used EV credit, they are not eligible for another credit for three years.
The vehicle must be for personal use and "not for resale."
The vehicle must be purchased through a dealer.
Only an individual may claim the used EV tax credit. Businesses are excluded.
Yes, $4,000...I bought a Bolt this year.
Good video, but the language about needing to owe at least $7,500 in taxes at the end of the year isn't accurate.
Incorrect:::: married filing jointly $300k. Head of household $225. He had those switched around.
Too bad the 23/24 Prius Hybrid isn’t on this list. Of course they’d want you to pay twice the price for the models listed with less resale value. Damn government! 😡 🤦♂️
Why isn't the tax credit $21.875?
That's what a fossile car is subsidized through oil. (IMF 2023 numbers).
And, why do you need to pay the tax back. This is not the same with fossile cars.
can the car be used?
Yes, $4,000 rebate. It must be 3 years old though.
Wouldnt that essentially pay for the whole lease and then some lol
Wonderful I get screwed out of $7,500 due to income. But yet the taxes I pay pay for people that make less than me so they can get a discount. Such BS!
Most people should stop tax withholdings if they buy an E.V. It's a Tax credit. Not a refund; at the end of the year, you receive a tax credit, But only if you owe taxes; talk to your Tax advisor and plan ahead.
It says on the IRS site you can use previous years income if you’re over the limit the year you bought the car. Was your income in 22 also too high?
Disgusting that you make that much money in the first place yet you want more when people struggle to make 30k a year? Screw you!
@@Jeffginter You really don't understand this. By stopping your withholding you may actually owe a penalty. What you owe in taxes doesn't change because you stopped withholding, withholding is nothing more than prepaying what you owe at the end of the year.
@@dalelong4716 I understand stand what you’re saying, but my tax withholdings were high about 8k each year , this usually resulted in a tax refund each year.
If I didn’t reduce my monthly withholdings, the federal $7500 would not apply, I would not owe the government anything and could not apply the EV credit. The credit only applies if you owe money, so paying my taxes monthly would have reduced my EV savings.
Can we please lower the volume of the generic music in the video... jesus that is just so annoying to listen to the entire time. Just present with a clear voice and use (better) music/beats when it's appropriate.
If BEVs are so great as costs saving to use as many of the fanboys proclaim, then stop all those tax incentives as charge equally for road use. Let the market decide.
I look at it this way - people weren't 'incentivized' into purchasing iphones. It occurred naturally due to being superior to it's predecessor. Why aren't Ev's treated the same way? Simple. Customers aren't interested.
Lol I agree with you. If the market had any say, where do you think EV sales would be?
Where would internal combination vehicles be without oil subsidies?
@@kokovox The real question is, how will the government maintain the roads without oil taxation?
@@kokovoxwhat oil subsidies? Please explain.
When the government is willing to give you back money for buying something in a FREE MARKET! it's never a good thing.
I think you have been listening to too many podcast!
@@kakashi99908 I don't listen to podcasts. I listen to common sense. A free market is non-governed, and non-biased by the government.
The government incentivizing people to buy particular products from specific companies by allowing tax credits is swaying the general public's choices in a free market. A free market is dictated simply by the consumer, without any outside intervention. The government's involvement is bad. Every. Single. Time.
@@Carl_Jr your acting like these tax credits only apply to Tesla? In reality they Apply to all companies in the us that are making evs?
@@Gabri3lRocha What part of my comment was difficult for you to understand? When did I mention any company, at all? Go back to mommy's basement.
@@Carl_Jr you didn’t but you did say and I quote “The government incentivizing people to buy particular products from specific companies” but they aren’t just doing it with specific companies. Any company qualifies as long as they make an ev in the US. Looks like someone was home schooled and still Iives with mommy 😂
Hopefully, in January 2025 all tax credits for buying an EV will be abolished. All EVs should be subject to an annual road tax which used to be paid at the pump but now they drive freely on the roads and bridges. And EVs generally weigh more than gas-powered vehicles doing more damage to our infrastructure.
Yeah cause all those tolls go towards paying for the bridges 😒
What flavor coolaid are you drinking
@@TypicalGuy84 I'm not talking about tolls. I'm talking about gas/diesel vehicles that pay federal and state taxes at the pump. Taxes paid at the pump are supposed to build and maintain our roads, bridges, etc. EVs don't pay any federal taxes to use our roads, bridges, etc., except in some states they may pay an additional fee at registration so the state can recoup unpaid road taxes. Haven't drunk Kool-Aid for years and wasn't one of the 918 murdered at Jonestown. ""get your mind straight""
My state raised the annual vehicle registration fee for EVs, PHEVs, and Hybrids…
The gov will always get their $ don’t worry.
On a related note you should work for the IRS.
There is no free ride with EVs. Many states already impose heavy fees on an annual basis. I'd be more concerned with the rise of Hybrids and more efficient (heavy) trucks. Not only are they spending less on gas tax, they're also doing the most damage with heavier curb weights in larger numbers. Pickup trucks and large SUVs are the best selling vehicles in North America.
Abolish all current road use taxes/fees then allow ALL vehicles to pay a straight mileage fee based on curb weight.
Shut up grandpa, go back to bed
Kredytobiorcy zróbmy strajk aby wakacje kredytowe były na takich samych warunkach co za PiS. Co Wy na to?