The Inflation Reduction Act, which previously provided tax credits for select new electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and hydrogen fuel cell electric vehicles (FCEVs), expired on Sept. 30, 2025. We are maintaining this article for archival and educational purposes.
While the U.S. federal government no longer offers these tax credits, many states still have their own programs.
READ MORE: Electric Car Rebates and Incentives: What to Know by State
What Were the Used Electric Car Tax Credits?
The Internal Revenue Service (IRS) defined the Clean Vehicle tax credit for used vehicles as 30% of the sale price, up to a maximum credit of $4,000.
The used EV tax credit also included the following restrictions:
- Used cars had to be at least two model years old.
- The vehicle had to be purchased from a dealership.
- Each vehicle could only qualify once in its lifetime.
- Buyers could only qualify for one EV tax credit every three years.
- Individuals had to meet income requirements (see below) and could not be claimed as a dependent on anyone else’s tax return.
- The used EV was limited to a gross vehicle weight rating (GVWR) of less than 14,000 pounds.
| IRS Tax Filing Status | Adjusted Gross Income Limit |
| Single | $150,000 |
| Head of Household | $225,000 |
| Married and Filing Jointly | $300,000 |
| Married and Filing Separately | $150,000 |
If you were to purchase a qualifying used electric vehicle, you had to obtain a copy of the “time-of-sale” document from the dealership, confirming that the dealership submitted the vehicle’s paperwork to the IRS. If the tax credit was not an instant rebate at the time of purchase, the buyer could file IRS Form 8936 and follow the instructions. To determine which used electric vehicles qualified, buyers were directed to consult the IRS website.
While this tax credit has expired, some states continue to offer EV programs and incentives. As with any used automobile purchase, always get a vehicle history report before buying, check Kelley Blue Book’s car value tool, and conduct thorough research on the vehicle. See our electric car guide to learn more.
Editor’s Note: We have edited this article since its initial publication. Renee Valdes contributed to the report.
