Clean Fuel Rewards
Are you looking to upgrade your commute while doing good things for the environment? Sales for electric vehicles continue to surge as more shoppers between Troy to Latham are looking for ways to enhance their travels while trying to help protect the environment.
What is the clean fuel reward, and is a used federal EV tax credit available? Find out below, and contact our sales team if you have any questions.
What is the Clean Fuel Reward?
With the new federal electric vehicle tax credit, many people are asking what it is and what vehicles qualify for this exciting tax credit. The IRS has made changes as part of the Inflation Reduction Act. So, if you want to take advantage of the credit, there are income and MSRP level limits, and the vehicle must be made here in America with battery components sourced “from a country with which the U.S. has a free-trade agreement.”
What does this mean? The minimum credit is worth $7,500, but if the battery minerals are not sourced correctly, that amount can be reduced to $3,750.
What Are the MSRP Requirements?
Vehicles and models you see on the list below don’t automatically qualify. They must also pass the following criteria:
- The final Assembly is in North America.
- Doesn’t exceed a manufacturer-suggested retail price (MSRP) of $80,000 for vans, SUVs, and pickup trucks or $55,000 for other vehicles
How do you know that your vehicle meets the assembly line requirements?
- Check its Vehicle Identification Number (VIN)
- Visit the Department of Energy’s website
- Use the VIN Decoder tool under “Specific Assembly Location Based on VIN”
Which Vehicles Qualify?
Following a revision by the IRS, the US Department of Treasury delayed the battery guidance about which EV manufacturers must build in the US for the vehicles to qualify. More time is needed, and they have until March 2023. These requirements haven’t been enforced yet, so the following electric cars currently qualify for the new federal electric vehicle tax credit.
- Cadillac (GM) – Lyriq (2022-2023)
- Chevrolet (GM) – Bolt EUV (2022-2023)
- Chevrolet (GM) – Bolt EV (2022-2023)
- Ford – F-150 Lightning (2022-2023)
- Ford – Mustang Mach-E (2022-2023)
- Ford – E-Transit (2022-2023)
- Nissan – LEAF SV, S Plus, SL Plus (2021-2022)
- Nissan – LEAF S / SV Plus (2021-2023)
- Rivian – R1T (2022-2023)
- Rivian – R1S (2022-2023)
- TESLA – Model 3 RWD/Long Range/Performance (2022-2023)
- TESLA – Model Y AWD/Long Range/Performance (2022- 2023)
- Volkswagen – ID.4 / ID.4 S (2023)
- Volkswagen – ID.4 Pro/Pro S (2023)
- Volkswagen – ID.4 AWD Pro/AWD Pro S (2023)
Plug-In/Electric Hybrid Vehicles
- Audi – Q5 TFSI e Quattro (2023)
- BMW – 330e (2021-2023)
- BMW X5 Drive45e (2021-2023)
- Chrysler – Pacifica Plug-in Hybrid (2022-2023)
- Ford – Escape Plug-in Hybrid (2022-2023)
- Jeep – Grand Cherokee 4xe (2022-2023)
- Jeep – Wrangler 4xe (2022-2023)
- Lincoln – Aviator Grand Touring (2022-2023)
- Lincoln – Corsair Grand Touring (2022-2023)
- Volvo – S60 Recharge /Extended Range (2022)
- Volvo – S60 T8 Recharge (Extended Range) (2023)
Used Federal EV Tax Credit
Yes! As of January 1, 2023, if you purchase a qualified used EV or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you could be eligible to receive the used clean vehicle tax credit. This credit equals 30 percent of the sale price up to a max credit of $4,000. Vehicles purchased before 2023 don’t qualify.
To qualify, you must:
- Be the person who purchased the vehicle for use and not resale
- Be the original owner
- Not be claimed as a dependent on another person’s tax return
- Not have claimed another used clean vehicle credit in the three years before the purchase date
Your modified adjusted gross income (AGI) can’t exceed:
- $150,000 for married filing jointly or a surviving spouse
- $112,500 for heads of households
- $75,000 for all other filers
For the used vehicle to qualify, it must meet all of the requirements below:
- Have a sale price of $25,000 or less.
- Have a model year at least two years earlier than the calendar year when you buy it. If purchased in 2023, it would need to be a 2023 model-year vehicle or order.
- Hasn’t already been transferred after August 16, 2022, to a qualified buyer.
- Have a gross vehicle weight rating of less than 14,000 pounds.
- Be an eligible FCV or plug-in EV with a battery capacity of at least seven kilowatt-hours
- Be for use primarily in the United States.
Learn More About the Clean Fuel Reward at Ford of Latham
Want to know more about the clean fuel reward and if your vehicle purchase qualifies? Give us a call! As your trusted Ford dealer Albany and Schenectady, we’re here to help walk you through the car buying or leasing process and help with questions and incentive programs like our college student discount and the new federal electric vehicle tax credit.
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