Federal New Clean Vehicle Credit: 2025 Rules and Deadline

Historical §30D rules for eligible acquisitions

The new clean vehicle credit was worth up to $7,500 for qualifying vehicles. These rules do not make a vehicle acquired after the deadline eligible. For earlier acquisitions, the specific vehicle, buyer, date placed in service and transaction must meet all applicable requirements. See the IRS new clean vehicle guidance.

Income: The individual modified adjusted gross income (MAGI) limit was $300,000 for married filing jointly or a qualifying surviving spouse, $225,000 for head of household, and $150,000 for all other filers. The IRS permits use of the applicable MAGI from the year of delivery or the prior year. Special rules apply if filing status changes.

Vehicle price: Manufacturer suggested retail price (MSRP) could not exceed $80,000 for vans, SUVs and pickup trucks or $55,000 for other vehicles. MSRP includes manufacturer-installed options and excludes destination fees; it is not necessarily the price paid.

Vehicle requirements: Among other requirements, final assembly had to occur in North America. For vehicles placed in service on or after April 18, 2023, the critical-mineral and battery-component requirements could each contribute $3,750 to the credit. See the IRS rules for the full details and other restrictions.

Claiming or transferring

When a credit is not transferred, it is generally nonrefundable for personal use and subject to the applicable tax liability limit. Eligible buyers could instead elect to transfer the credit to a registered dealer under the applicable rules. Tax liability works differently for a transfer; see the IRS transfer FAQ.

The IRS says to file Form 8936 for the year the vehicle is placed in service, including when a credit was transferred. Keep the seller report and review the applicable form instructions.