Answer Library

Is there a price limitation on a previously-owned clean vehicles eligible for the credit?

The information provided does not, and is not intended to, constitute legal advice. Generative AI systems can make mistakes. Verify all important information. This answer was last updated on Jun 11, 2024. Please read our Terms of Use and Privacy Policy.

We used Ask Blue J to write a response:

Yes, there is a price limitation on previously-owned clean vehicles eligible for the credit. The sales price of the vehicle must not exceed $25,000. If the sales price exceeds this limitation, the vehicle is not eligible for the previously-owned clean vehicle credit. The sale price is determined as the total sale price agreed upon by the buyer and seller in a written contract at the time of sale, including any delivery charges and after the application of any incentives, but excluding separately-stated taxes and fees required by State or local law. The sale price is determined before the application of any trade-in value and does not include separate financing, extended warranties, or insurance.

Sources:
§ 30D. Clean vehicle credit
Notice 2023-9
IRS FAQ
FS-2023-4
Rev. Proc. 2023-38
FS-2023-22
FS-2023-29

Have more tax questions? Try Ask Blue J today.
Get a DemoExplore all Questions

Welcome to the Answer Library from Ask Blue J, generative AI for tax research.

Try Ask Blue J today.

Get a demo

Discover More

Related Questions

Sections

Tax Deductions, Credits, and Amortization
How much of the Child Tax Credit can I claim on my 2021 tax return
Read more
As a recipient of Deferred Action for Childhood Arrivals (DACA), am I prevented from claiming the Child Tax Credit
Read more
Last year, my parents and I both took out student loans to pay for my education. We both received Form 1098-E for our separate loans. I wasn't their dependent last year. Can we both claim student loan interest on our tax returns?
Read more

Interested in seeing Blue J in Action? Just Ask

Get a demo