2024 New And Used Electric Vehicle EV Tax Credit Explained (updated information on AGI requirements)

2024 New And Used Electric Vehicle EV Tax Credit Explained (updated information on AGI requirements)

Welcome to Bob py Chevrolet’s YouTube channel I want to talk about the 2024 EV tax credit on new and used uh and try to get you as much information as possible until the IRS and the federal government changes their mind which never happen so don’t worry about that currently uh

First we’re going to start with adjusted gross income I will refer to it as AGI after uh this uh going to put two different links in the uh in the information section only because I am finding contradictory information one’s from the IRS one is from fuel economy.gov which is the site that uh

They’re directing everybody to so we’ll go to to fueleconomy.gov information which is uh for married filing jointly as long as you are at $300,000 or lower uh with uh just filing as head of household $225,000 filing uh individually $150,000 now different IRS one I found 150,000 112500 and 75,000 for the three AGI

Categories I’m going with the fuel economy.gov one until proven otherwise uh and we’ll you can get that verified when you’re in the process of purchasing also uh on the the vehicle on the new side SUVs have to be under $80,000 same with trucks $80,000 or less cars sedans hatchbacks flying vehicles $55,000 or

Less there is two separate parts to that first part $3,750 uh some of the EV battery components must be built or assembled in North America um currently you know Chevy GM come on guys we got to get this fixed so only right now the bolt EV and the bolt

E sorry bolt EV and the bolt euv qualifi uh they’re working on getting that corrected for the Blazer Silverado and the uh Equinox uh and then always check with the manufacturer and with the dealership make sure that the vehicle does qualify second part of that another $ 3750

Critical minerals and Battery mined or processed in the US or Free Trade Agreement partners um I’m not in a oh I used to be in geopolitical uh science is but uh I don’t know exactly who qualifies for that I’m guessing if it comes from Canada you’re good Mexico you’re good

Korea for example you’re good uh on the U side uh the max is $44,000 sale price has to be $25,000 or less sale price not the overall amount including taxes that’s very important information so like I said we’ll start with max out $7,500 credit by the way I should let

You know no tax credit means it’s coming off the sale price so you’re buying a $47,500 new EV electric vehicle and you get all $7,500 that sale price will now be $40,000 you do not have to wait till tax time to have that money come off it

Is being uh fronted to you and as long as you at the end of the year Meet the AGI requirements you are good on the U side the $4,000 same thing so it’s $25,000 sale price on the vehicle you’re going to be paying $21,000 before the government gets their share sales tax

Documentation fees things like that if you have any questions please feel free to give us a call at 513 932 0303 uh we will answer them for you uh you can leave questions in the comments section I will answer them to the best of my abilities my name is Michael Smith

I’m the internet director here I want to thank you for your time and thank you for uh listening to me ramble about taxes geopolitical situations involving minerals all these things I never thought I would have to talk about in my career but uh actually do find it rather

Fascinating so thank you everybody have a great day

I break down to the best of my ability the rules for the tax credit in 2024 for new and used EV purchases.

Having received some clarification (why would I assume the government would make it simple and have same agi rules for both is beyond me)

Here is the link for the Used. AGI maxes are 150,000/112,500/75,000
https://uscode.house.gov/view.xhtml?req=(title:26%20section:25E%20edition:prelim)

https://www.irs.gov/credits-deductions/used-clean-vehicle-credit

Here iss the link for the new. AGI maxes are $300,000/225,000/150,000
https://fueleconomy.gov/feg/tax2023.shtml

Other key requirements are Trucks and Suvs on new must be $80,000 or less and cars $55,000 or less and a max credit of $7,500.

On the used side the sale price must be $25,000 or less and you get a max credit of $4,000.