Utica, NY, – With Tax Day coming up in just under three weeks, AAA reminds drivers who bought an electric vehicle to claim their tax credit on their taxes if their vehicle qualifies. And there may be many drivers who are eligible: in 2022, more than 50,000 electric vehicles were newly registered in New York, according to the EValuateNY dashboard
In general, consumers who purchased a new battery electric vehicle or plug-in hybrid in 2022 will be eligible for a tax credit of up to $7,500 as long as:
- The car was not a Tesla or General Motors vehicle (which had hit a 200,000-vehicle maximum for the prior rebate program), and
- If their purchase came on or after August 17, the vehicle’s final assembly occurred in North America (which drivers can check by looking up their VIN on gov/vin-decoder or checking the Department of Energy’s website).
To fully understand the implications for their specific return, filers should consult a tax professional.
Drivers should complete IRS form 8936 to be eligible, and ensure that the credit is included if they are using a tax filing software. AAA members can save 25% on filing with TaxAct at AAA.com/TaxAct.
The Inflation Reduction Act made significant changes to the federal tax rebate program that took effect for purchases made in 2023, including instituting income and MSRP caps and allowing Tesla and GM vehicles to be eligible. The law also added restrictions on the sourcing of battery components and critical minerals, and guidance on how those restrictions will be implemented is expected from the Department of the Treasury soon. However, for purposes of filing tax returns this month for the 2022 tax year, these provisions do not apply. Consumers can check if they may be eligible for rebates on AAA’s new website for all things electric vehicles, AAA.com/EV.