Qualifying vehicles for the clean energy tax credit
If you’re in need of a new vehicle, or just want to upgrade to something more environmentally friendly, there is now a tax credit that can offset the cost of certain makes and models that will also reduce your carbon footprint.
The (up to) $7,500 credit counts toward new qualified plug-in electric vehicles or fuel cell vehicles. To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles), with next year’s tax return.
You will need to provide your vehicle’s VIN. Here is a list of some of the qualified vehicles and more information about the credit. There are other automakers that have agreed to become qualified manufacturers but have yet to submit a list of eligible models to the IRS; for example, Honda and Toyota. It is also recommended to confirm with the dealership that the vehicle you want to purchase qualifies.