2023 Inflation Reduction Act and 2023 Clean Car Tax Credit Changes

More and more Long Branch drivers are turning to fuel efficient, clean-running electric vehicles like the Ford Mustang Mach E. Ford and other automotive manufacturers have growing lineups of electric vehicles—EVs for short—that are changing the way we drive for the better. Part of the appeal of an EV is the savings drivers get, not just on fuel but also through tax credit programs. However, EV tax credit changes seem to happen often, and that can be confusing. Let DCH Ford of Eatontown walk you through the 2022 Inflation Reduction Act and the 2023 Clean Car Tax Credit. If you have questions, contact us and we’ll gladly help you find all the ways an EV will save money for you. 

2023 Clean Car Tax Credit for New Vehicles

The Inflation Reduction Act of 2022 led to some EV tax credit changes that will make it less expensive to buy an EV for a long time. Specifically, if you buy a qualifying vehicle in Tinton Falls or elsewhere between 2023 until 2032, you’ll get up to $7,500 in federal tax credits. How do you qualify for these tax credits? You and your vehicle must meet these criteria: 

• Individuals or businesses that purchase a new, qualified plug-in EV for personal use (not resell). 
• Use the EV primarily in the United States
• Your modified adjusted gross income (AGI) may not exceed $300,000 for married couples filing jointly, $225,000 for heads of households, or $150,000 for all other filers
• Your EV or hybrid must have a battery capacity of at least 7 kilowatt hours, have a gross vehicle weight rating of less than 14,000 pounds, and be made by a qualified manufacturer, like Ford. 
• Vehicle must have undergone final assembly in the U.S. 
• Sellers are required to report your name and taxpayer identification number to the IRS for you to be eligible to claim the credit.
• Manufacturer’s suggested retail price can’t exceed $80,000 for vans, sport utility vehicles and pickup trucks/ $55,000 for other vehicles.

To get your credit fill out and file Form 8936 with the Internal Revenue Service when you file your taxes. 

2023 Clean Car Tax Credit for Used Vehicles 

Red Bank shoppers who choose a qualified used EV or hybrid also have a Clean Car Tax Credit! Eligibility for used vehicles varies a little from the new EV guidelines: 

• Sale price must be $25,000 or less
• Vehicle must be at least two years earlier than the calendar year (i.e.. 2021 or older would need to be purchased to qualify currently).
• Not have been transferred after August 16, 2022 to a qualified buyer
• Have a gross vehicle weight rating of less than 14,000 pounds
• Be an eligible plug-in EV with a battery capacity of least 7 kilowatt hours
• Be for use primarily in the United States

As with the Clean Car Tax Credit for new cars, buyers will need to submit Form 8936 with their income tax return for the year when they purchase their used EV or hybrid. The tax credit is 30 percent of the vehicle’s price, up to $4,000. 

Eligible Ford Models

You can get tax credits when you purchase any of these Ford vehicles that are new 2022 or 2023 models: 

• Ford Escape Plug-In Hybrid
• Ford E-Transit
• Ford F-150 Lightning
• Ford Mustang Mach E

If you’re buying a used Ford EV or hybrid, look for these models: 

• 2013-2017 Ford C-Max Engergi
• 2020-2021 Ford Escape Plug-In Hybrid
• 2012-2018 Ford Focus Electric
• 2013-2020 Ford Fusion Energi
• 2021 Ford Mustang Mach E

Learn More About Ford Electric Vehicles with DCH Ford of Eatontown

Now that you know how to make the most of the latest EV tax credit changes, are you ready to learn more about how to electrify your ride? Pay a visit to the DCH Ford of Eatontown EV information hub, where you can learn about how to make the switch to an EV, and what Ford EVs have to offer. If you’re ready to start shopping check out our EV and hybrid inventory today!