Inflation Reduction Act Clean Vehicle Credit Plan FAQ

The income limits for buyers of new EVs, PHEVs, and fuel-cell vehicles are fairly high and are based on adjusted taxable income for the year of the purchase or the year before, whichever is lower: $150,000 for a single filer, $300,000 for joint filers, and $225,000 for a head-of-household filer.

Price limits, based on the vehicle’s MSRP — that’s the sticker price from the factory, before taxes, fees, and anything the dealer adds — are $55,000 for qualified sedans and $80,000 for pickups, SUVs, and vans.

That’s going to exclude a number of North American-made EVs, including the GMC Hummer pickup and SUV, the initial versions of the Rivian pickup and SUV (sub-$80,000 trims are coming in a year or so), the Lucid Air sedans, and the top trims of the Ford F-150 Lightning and Chevrolet Silverado/GMC Sierra electric pickups.

In part 3 of this series, we’ll get into how the Clean Vehicle Credit plan may affect shoppers in the near future.

 

*This article is for informational purposes only and is not intended to substitute for professional tax advice.

 

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