Electric Vehicle Tax Credits
Electric Vehicle Tax Credits
Legislation updates for EV tax incentives and rebates
New legislation includes tax credits for EVs*
The recently passed Inflation Reduction Act (IRA) includes tax credits for electric vehicles to support the role they play in advancing U.S. carbon reduction goals. Over the next several years, this new legislation will create an opportunity for companies and individuals to embrace electrification while reducing the cost of adoption.
Clean vehicle tax credits
The IRA’s new clean vehicle tax credits are now available and include up to $7,500 per vehicle for new vehicles, up to $4,000 for previously owned EVs and up to 30% for commercial vehicles and buses. Infrastructure tax credits have also been extended through 2032 and the cap has been raised from $30,000 to $100,000.
Plug In America: What You Need To Know About 2023 EV Tax Credits
Previously established sales volume limitations have been removed. Tax credits are now subject to certain domestic sourcing and manufacturing requirements (for new vehicles) as well as vehicle MSRP requirements and income thresholds for individuals and married couples.
Electrification Coalition: Inflation Reduction Act Impacts on Electric Vehicles
Qualifying individuals can receive up to $4,000 in credits for previously owned vehicles, as long as the model year is at least two years earlier than the calendar year in which the vehicle is acquired and its sales price is $25,000 or less.
How to claim the tax credits
For vehicles purchased in 2023, the EV tax credits will be accessed through filing your year-end taxes. Starting in 2024, eligible consumers will be able to access these credits at the vehicle’s point of sale, or when you buy your vehicle from a qualified dealer.
Commercial EV buyers can receive a tax credit up to $7,500 for light-duty vehicles and up to 30% (limited to $40,000) for heavy-duty vehicles.
*Information current as of April 2023. We encourage anyone looking to take advantage of these credits to consult a tax professional prior to making your purchase.
Combine federal rebates with Duke Energy programs
Commercial and residential customers can stack federal rebates on top of Duke Energy's incentive programs for even more savings. Learn more about availability and eligibility on our Electric Vehicles webpage.