Determine electric vehicle tax credit eligibility and amount based on vehicle MSRP, income limits, and battery capacity requirements.
The federal EV credit is a stack of separate rules rather than a flat discount on every electric car, and this calculator walks through each one: the buyer's modified adjusted gross income against the caps, the vehicle's MSRP against the $55,000 and $80,000 limits, the 7 kWh battery minimum, and the two battery-sourcing requirements that each earn $3,750 of the $7,500 maximum. What users most often get wrong: the credit is binary, not proportional. A bigger battery never earns more, and adding options can push a car over the price cap. The credit was repealed for vehicles placed in service after September 30, 2025.
A concrete input and expected output from the current implementation.
Input
New 2025 electric sedan, MSRP $48,500, buyer single with modified adjusted gross income of $120,000, 82 kWh battery, assembled in North America, manufacturer-certified for both the critical minerals and battery components requirements.
Expected output
Eligible. Credit: $7,500 - $3,750 from the critical minerals requirement and $3,750 from the battery components requirement. The amount can be transferred to the dealer at the point of sale.
Each test passes: $48,500 is under the $55,000 cap for cars, $120,000 is under the $150,000 income limit for single filers, and 82 kWh clears the 7 kWh minimum, so the two sourcing halves add up to the full $7,500. This reflects the rules in effect through 2025.
The tool applies the rules in order: the vehicle must be assembled in North America, hold at least 7 kWh of battery, and price at or under the MSRP cap - $55,000 for cars, $80,000 for vans, SUVs, and pickups - then the buyer. Modified adjusted gross income must stay under $150,000 single, $225,000 head of household, or $300,000 married filing jointly, using the purchase year or the preceding year.
The maximum credit is two $3,750 halves, not one threshold. The critical minerals requirement earns the first half, the battery components requirement the second, and the manufacturer certifies both for each vehicle, with certification able to change from quarter to quarter. Meeting only one requirement returns $3,750. Since 2024, buyers may transfer the credit to the dealer at the point of sale, making it an immediate discount.
No. The credit applies only to vehicles placed in service on or before September 30, 2025, plus the narrow exception for vehicles already under binding written contracts when the law changed, which had to be delivered by the end of 2025. Neither covers a 2026 delivery, so budget the full price. If a dealer quotes a credit, ask for written justification.
No. Used EVs have a separate credit with different figures: up to $4,000 or 30% of the sale price, whichever is less, for vehicles priced at $25,000 or less that are at least two model years old, with income caps of $75,000 single, $112,500 head of household, and $150,000 married. That credit was also repealed for vehicles placed in service after September 30, 2025.
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