Used Clean Vehicle Tax Credit

Victory CDJR of Ottawa Introduces Used Clean Vehicle Credit

The staff at Victory Chrysler Dodge Jeep Ram of Ottawa is eager to introduce our customers to a great way to go green and put more green in their wallets with the used clean vehicle credit. Of course, we all understand the value of driving an electric vehicle or fuel cell vehicle to eliminate harmful emissions and protect the planet for future generations. Now, the IRS offers an added financial benefit to EV and FCV buyers who qualify.

What is the Used Clean Vehicle Credit?

When you purchase a qualifying used electric vehicle or fuel cell vehicle from Victory Chrysler Dodge Jeep Ram of Ottawa, you can get up to $4,000 in tax credit. This credit is for qualifying vehicles purchased after January 1, 2023, with a purchase price of $25,000 or less. To determine how much your credit would be, calculate 30% of the cost of the vehicle, up to $4,000. Remember that this bonus is a tax credit, so if the amount exceeds the taxes you owe for the year, it will not be refunded to you. However, you can apply any overage to your tax liability in the future.

Who is Eligible for the Used Clean Vehicle Credit?

Car buyers in Olathe, Kansas City, and Overland Park are all excited to learn more about the details of this significant tax credit program. Some of the most critical items buyers need to know are:

• You must be buying the vehicle for your own use and not for resale
• You cannot be the original owner of the vehicle
• You cannot be claimed as a dependent on anyone else’s taxes
• You have not claimed any other clean vehicle credit in the three years prior to this purchase
• Your modified adjusted gross income as a married couple filing jointly cannot exceed $150,000
• Your modified adjusted gross income as head of household cannot exceed $112,500
• All other buyers cannot have a modified adjusted gross income of over $75,000

Used Clean Vehicle Credit Qualifications to Understand

Buyers should know the following requirements for vehicles to qualify for the used clean vehicle credit:

• The purchase price of the vehicle should be $25,000 or less, including all dealer fees
• The vehicle must be from the model year two years prior to the date of purchase or less
• The vehicle cannot have already been transferred to a qualified buyer after August 16, 2022
• The gross vehicle weight must be less than 14,000 pounds
• Qualifying vehicles must be FCV or EV with a battery capability of at least 7 KWh
• The vehicle must be purchased for use primarily in the United States

If you want to see a comprehensive list of the vehicles that qualify for the program, visit the fueleconomy.gov page.

More Vital Information for Buyers

When you purchase a qualifying vehicle, you will want to be sure to gather the information needed to claim your credit with the IRS, which includes:

• The dealer name and taxpayer ID number
• The sale date and price of the vehicle
• The amount of the credit for the vehicle
• The VIN
• The vehicle battery capacity

To learn more about this great opportunity, please get in touch with the used vehicle sales team at Victory Chrysler Dodge Jeep Ram of Ottawa. These experts will show you the vehicles in our inventory that meet the criteria for this credit and how to claim your used clean vehicle credit.