What is the 2023 EV Tax Credit?

Buying an electric or plug-in electric vehicle brings a lot of benefits, from improved performance specs to zero carbon emissions. But did you know that there are financial advantages as well? It’s true! While EVs and PHEVs do tend to be a bit pricier than their gasoline-powered counterparts, they come with one big draw: the EV tax credit. 

In an effort to incentivize drivers in Manteca and beyond to upgrade to electric power, the U.S. government has a federal tax credit of up to $7,500 that you can claim if you buy a new EV from a qualified automaker. The recent Inflation Reduction Act of 2022 renamed this incentive the Credits for New Clean Vehicles, and will cover vehicles manufactured from 2023 to 2032. The team at Central Valley Chrysler Jeep Dodge Ram has put together a guide outlining all the details of the clean vehicle tax deduction below, so you can stay informed as you shop for your next ride.

How the Credits for New Vehicle Vehicles Work

Not every electric or plug-in electric vehicle qualifies for the 2023 EV tax credit, and not every buyer qualifies either. There are a set of requirements that you and your vehicle must both meet in order to be eligible for the incentive. Your requirements include:

• You must purchase the vehicle, not lease it.
• You must use the vehicle primarily in the U.S.
• Your modified adjusted gross income (AGI) must not exceed $300,000 for married couples, $225,000 for heads of households, and $150,000 for all other filers.
• You must buy the vehicle brand-new, not from a third-party buyer–only the original owner of the vehicle can claim the tax credit. 

Here are the requirements that the vehicle must meet:

• Its battery must have a capacity of at least 7 kWh.
• It must have a GVWR of less than 14,000 pounds.
• It must be from a qualified manufacturer listed by the IRS.
• It must be assembled in North America.
• The MSRP can’t exceed $80,000 for vans, SUVs, and pickup trucks, or $55,000 for other vehicles. 

If you and your vehicle both meet the requirements above, you can fill out this form and file it with your next tax returns to claim the credit. 

2023 EV Tax Credit Vehicles

Now that we’ve gone over the eligibility requirements for the clean vehicle tax deductions, let’s take a look at what you can buy from Central Valley Chrysler Jeep Dodge Ram! As of 2023, there are three vehicles we offer that qualify for the tax credit:

• Chrysler Pacifica Plug-In Hybrid(Minivan): MSRP from $50,495
• Jeep Wrangler 4xe(Pickup Truck): MSRP from $54,735
• Jeep Grand Cherokee 4xe(SUV): MSRP from $41,530

Find Your Next EV at Central Valley Chrysler Jeep Dodge Ram!

Interested in seeing how one of our plug-in hybrids handles on the road? Contact our office to set up a test drive around Turlock or Stockton, and we’ll get you behind the wheel in no time! You can also contact us or check out our model research for more information on the vehicles listed above.