The federal clean vehicle credit is worth up to $7,500 on a new EV and $4,000 on a used one — but income limits and MSRP caps trip up many buyers. Enter your numbers to see exactly what you qualify for in 2025.
✏️ Your Vehicle Purchase
💰 Your Clean Vehicle Credit
Maximum Credit$7,500
Credit Before Income Limit$7,500
Income Limit$150,000
Credit Allowed$7,500
📊 Worked Examples
Scenario
Vehicle
Price
MAGI (status)
Credit
New EV, meets all requirements
New (§30D)
$45,000
$90,000 (MFJ)
$7,500
New EV, income above the MFJ cap
New (§30D)
$45,000
$350,000 (MFJ)
$0
Used EV under the $25,000 cap
Used (§25E)
$28,000
$60,000 (Single)
$0 (price cap)
Used EV eligible
Used (§25E)
$22,000
$60,000 (Single)
$4,000
New EV, MSRP above the SUV limit
New (§30D)
$85,000
$100,000 (MFJ)
$0 (MSRP cap)
New vehicles require final assembly in North America plus battery-mineral and component sourcing rules; not every EV qualifies for the full $7,500. Used EVs must sell for $25,000 or less and qualify for 30% of price, capped at $4,000.
📖 New vs Used: Two Different Clean Vehicle Credits
Buying electric isn't one credit — it's two separate IRC sections with different rules, caps, and income limits.
New Clean Vehicle Credit — §30D
Amount: up to $7,500 ($3,750 for meeting battery-mineral rules + $3,750 for component-assembly rules)
MSRP caps: $80,000 for SUVs, vans, and pickups; $55,000 for cars
Income limits (MAGI): $300,000 MFJ, $150,000 single, $225,000 head of household — based on the current or prior year, whichever is lower
Final assembly must be in North America, and the vehicle must have a 7 kWh+ battery
Previously Owned Clean Vehicle Credit — §25E
Amount: 30% of sale price, capped at $4,000
Price cap: the vehicle must sell for $25,000 or less
Income limits (MAGI): $150,000 MFJ, $75,000 single, $112,500 head of household
First transfer: the vehicle must not have been claimed for this credit before, and model year must be at least 2 years older than purchase year
Getting the money
From 2024, both credits can be transferred to the dealer at the point of sale as cash, effectively lowering your price immediately. Either way you claim it on Form 8936. The credits are nonrefundable, but the point-of-sale transfer removes the need to have enough tax liability.
Frequently Asked Questions
What are the 2025 income limits for the new EV credit?
Modified adjusted gross income must be at or below $300,000 for married filing jointly, $225,000 for head of household, or $150,000 for single filers. You may use the lower of the current or prior tax year.
How much is the used EV credit worth?
The previously owned clean vehicle credit is 30% of the sale price capped at $4,000. The vehicle must cost $25,000 or less and have a model year at least two years older than the purchase year.
Can I get the credit if my tax liability is low?
Yes. Since 2024 you can transfer the credit to the dealer and receive it as a cash discount at the point of sale, so you are not limited by your federal tax liability.
Does every electric vehicle qualify for the full $7,500?
No. The credit is split into two $3,750 halves based on battery-mineral sourcing and battery-component assembly rules, and the vehicle must undergo final assembly in North America. Some models qualify for only part of the credit, or none.
Do plug-in hybrids qualify?
Yes, plug-in hybrid electric vehicles can qualify for the new clean vehicle credit if they have a battery of at least 7 kWh and meet the same assembly and sourcing requirements as fully electric vehicles.
⚠️ Important: This calculator applies the 2025 §30D and §25E income limits, MSRP caps, and credit amounts. Eligibility also depends on battery sourcing rules, North American final assembly, and dealer reporting that a simple calculator cannot verify. Confirm your specific vehicle's eligibility at fueleconomy.gov before purchase.