Used Clean Vehicle Credit: Historical Rules and Deadline

Historical §25E rules

For qualifying earlier acquisitions, the used clean vehicle credit was 30% of the sale price, up to $4,000. Purchases before 2023 did not qualify under §25E. See the IRS used vehicle guidance for complete requirements.

The vehicle had to be purchased from a licensed dealer for $25,000 or less, with a model year at least two years earlier than the calendar year of purchase. The IRS also lists battery, vehicle history, buyer, income and seller reporting requirements. For example, the vehicle must not already have been transferred after August 16, 2022 to a qualified buyer. Check the IRS rules rather than relying on a model list.

Individual MAGI could not exceed $150,000 for married filing jointly or a qualifying surviving spouse, $112,500 for head of household, or $75,000 for other filers, subject to the IRS prior-year rule. Meeting one requirement does not guarantee eligibility.

Reporting

The IRS requires Form 8936 for the year of delivery, including when a credit is transferred. Retain the time-of-sale report. A non-transferred credit is nonrefundable; a transfer is treated differently. See the IRS transfer FAQ for tax liability and repayment details.