For the first time in 2024, people who qualify for the Clean Vehicle Credit (CVC) may transfer the credit to a registered dealership as a down payment, or in exchange for a discounted vehicle price. Vehicles eligible for the credit include many fully electric, plug-in hybrid and fuel cell vehicles assembled in North America. To qualify for the credit, a new vehicle must have a manufacturer’s (MSRP) not exceeding $80,000 for vans, pickups and SUVs, or $55,000 for all other passenger cars. Note that this restriction is based solely on MSRP, not on the price a buyer actually pays for the vehicle.

The IRS recently reclassified some cars as SUVs, making them eligible for the CVC due to the higher MSRP limit. If you recently purchased an electric or plug-in hybrid car but could not claim and/or transfer the CVC due to the MSRP, you can search the current list of eligible vehicles (link below) to see if your car now qualifies for the CVC. If so, you may be able to claim the credit on your 2024 tax return by obtaining a vehicle eligibility report from the dealer.

Updated Qualifying Clean Vehicles List: https://fueleconomy.gov/feg/tax2023.shtml