Wayne, N.J., March 29, 2023 — With Tax Day coming up in just under three weeks – Monday, April 18 – AAA reminds drivers who purchased an electric vehicle to claim their tax credit of their vehicle qualifies. And there may be many drivers who are eligible: in 2022, the number of electric vehicle registrations increased by more than 27,000, according to the Department of Environmental Protection.
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 nhtsa.gov/vin-decoder or check the Department of Energy 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 materials, and guidance on how those restrictions will be implemented is expected from the Department of Treasury soon. However, for the purpose 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.