How To Claim $7,500 EV Tax Credit

Starting in January 2024, the federal EV tax credit will change how it works. Rather than waiting to file your taxes to lower your tax bill, you can get what amounts to lowering the price of an EV by $7,500 at the time you purchase the new vehicle.

We’ll explain how to claim the $7,500 EV tax credit with our guide. Our team also answers, “How does the EV tax credit work?” We think you’ll be encouraged to purchase a new EV from our lot near State College!

How Does the EV Tax Credit Work?

Before learning how to claim the $7,500 EV tax credit, you have to begin the process itself.

It starts by picking out a new electric vehicle on our lot. We can verify that it meets the criteria for the federal EV tax credit ahead of your purchase. We’ll also show you how to claim the $7,500 EV tax credit when you sign the paperwork.

You sign a form verifying your income and that you’re purchasing a qualifying EV. At that point, our finance team will reduce the price of the EV by anywhere from $7,500. You need to purchase a full EV to get the entire $7,500 federal EV tax credit. If you purchase a hybrid, you might be able to get half of that for your Johnstown vehicle. Getting the federal EV tax credit is very simple!

How Does the EV Tax Credit Work: Cars that Qualify

See the criteria for the cars that qualify for the federal EV tax credit:

• Draws propulsion using a traction battery that has at least 5 kilowatt-hours (kWh) of capacity
• Uses an external source of energy to recharge the battery
• Has a gross vehicle weight rating (GVWR) of up to 14,000 pounds
• Meets specified emission standards 
• Has to be mostly driven in the United States
• The MSRP can’t exceed $80,000 for vans, SUVs, and pickup trucks
• The MSRP can’t exceed $55,000 for other vehicles
• Must be assembled in the United States

The exact cars that meet these requirements may change based on government standards in 2024. But here is a non-official list of what qualifies in 2024 for a partial or full EV tax credit:

• Chevrolet Bolt and Bolt EUV
• Chrysler Pacifica Hybrid PHEV
• Ford F-150 Lightning
• Lincoln Corsair Grand Touring
• Jeep Grand Cherokee 4xe
• Jeep Wrangler 4xe
• Rivian R1S and R1T
• Volkswagen ID.4
• All Tesla vehicles

You’ll notice that there aren’t any GM vehicles on that list. One reason is that the Hummer EV exceeds the $80,000 maximum threshold for the tax credit. We will get the GMC Sierra EV at some point, but its price may also be above the $80,000 threshold as a luxury pickup truck.

Am I Eligible for the Federal EV Tax Credit? 

You are eligible for the Federal EV tax credit if your adjusted gross federal income meets these limits:

• $300,000 for married couples filing jointly
• $225,000 for heads of households
• $150,000 for all other filers

How Long Will the Federal EV Tax Credit Last? 

When the Inflation Reduction Act of 2022 was passed in the United States, Americans became eligible for these tax credits until 2032. We’ll help you fill out the paperwork to make sure you get the federal EV tax credit if you qualify.

Have Questions About EV Ownership?

Contact us or call (814) 204-3682 to ask any questions you have. We’re happy to answer! If you’d like to test drive an EV on our lot, we might have a few in our used vehicle inventory.