Treasury Department Releases Guidance for New EV Tax Credits Beginning Jan. 1, 2024

Treasury Department Releases Guidance for New EV Tax Credits Beginning Jan. 1, 2024

The Treasury Department has released guidance for the new electric vehicle tax credits that will begin on January 1, 2024. The credits will be available to individuals and businesses that purchase or lease an eligible electric vehicle.

What Are the Details of the EV Tax Credit?

The credits are available for new electric vehicles purchased or leased after January 1, 2024. The credit amount is based on the battery capacity of the vehicle, with a maximum credit of $7,500. The credits are available for vehicles with a battery capacity of at least 5 kilowatt-hours. The credits are available for the first 200,000 vehicles sold by each manufacturer, after which the credit amount begins to phase out.

How Can I Claim the Credit?

To claim the credit, you must file a Form 8936 with your tax return. The form must include the make, model, and year of the vehicle, as well as the battery capacity. The credit will be applied to your tax return, reducing the amount of taxes you owe.