Used EV Tax Credit (25E)
A federal tax credit of up to $4,000 (or 30% of sale price, whichever is less) for qualifying used electric vehicles purchased from a dealer. Income cap: $75,000 AGI single / $150,000 joint.
Why It Matters
The used EV credit makes electric vehicles accessible to moderate-income households. Combined with lower fuel costs, a $15,000 used EV with a $4,000 credit is a strong value.
Related Terms
EV Tax Credit (30D)
A federal tax credit of up to $7,500 for new qualifying electric vehicles purchased in 2023-2032 under IRA section 30D. Income and MSRP caps apply. Assembly and battery sourcing rules restrict eligibility.
Electric Vehicle (EV)
A vehicle propelled entirely by one or more electric motors, powered by a rechargeable battery pack. Includes battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).