Historical EV Tax Credit Income Limits

Limits for qualifying earlier acquisitions

For the new vehicle credit, the individual 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. For the used vehicle credit, the corresponding limits were $150,000, $112,500 and $75,000. The limits are inclusive: MAGI may not exceed the applicable threshold.

The IRS allows the applicable MAGI from the year the vehicle is placed in service or the preceding year. If filing status changes, the applicable threshold for each year must be considered. Income is only one requirement, and meeting a limit does not establish eligibility.

What is MAGI for these credits?

The definition is specific to these credits. The IRS starts with adjusted gross income and adds certain excluded foreign earned income and income from Puerto Rico or American Samoa. Do not assume a different tax provision’s MAGI calculation applies. See the IRS income FAQ and the applicable Form 8936 instructions.

Transfers and income reconciliation

A buyer who transferred a credit but does not meet the applicable income limits must repay the credit when filing, as explained in the IRS transfer FAQ. A good-faith estimate alone does not waive this repayment requirement.