Federal EV Tax Credit Eligibility Checker

How to use the eligibility checker

This tool walks through the three IRS tests for Section 30D (new vehicle) and Section 25E (used vehicle) in sequence. Start by selecting "New" or "Used" EV, then enter your filing status and Modified Adjusted Gross Income (MAGI). For most W-2 employees, MAGI is very close to your AGI from your most recent tax return — find it on Line 11 of Form 1040.

Select the vehicle's class (car, SUV, truck, or van) and enter the MSRP. For the sourcing test, the most reliable approach is to check the vehicle on the IRS qualified-vehicle list directly — the list shows the credit amount for each trim, which implicitly tells you whether both sourcing tests pass ($7,500), one passes ($3,750), or neither passes ($0).

Understanding your MAGI

Modified Adjusted Gross Income is your federal AGI (Line 11, Form 1040) plus a small number of deductions added back. For the clean vehicle credit, the add-backs include: excluded foreign income, IRA deduction, student loan interest deduction, tuition and fees deduction, and a few others. For the majority of taxpayers without these specific deductions, MAGI equals AGI.

The IRS allows you to use the lower of your current-year MAGI or your prior-year MAGI for the income test. This "prior-year safe harbor" is particularly valuable:

• If your prior-year MAGI (from last year's filed return) is below the threshold, you can safely transfer the credit at point of sale without clawback risk, even if your current year income ends up over the cap.
• If your prior-year MAGI was over the threshold but you expect your current year to be under it, you may still qualify — but you'll need to wait to file your current-year return to confirm, rather than using point-of-sale transfer.

The sourcing test — finding reliable answers

The checker allows you to input "Yes," "No," or "Unsure" for the sourcing test. If you select "Unsure," the tool shows you what the credit would be under each outcome to illustrate the stakes. To get a definitive answer:

1. Find the specific make, model, year, and trim on the IRS qualified-vehicle list at IRS.gov. The list shows the applicable credit amount for each configuration — $7,500 means both sourcing tests pass, $3,750 means one passes, unlisted means the vehicle does not qualify under 30D at all.
2. Crosscheck at fueleconomy.gov — the vehicle detail page shows federal tax credit eligibility and amount for the current model year.
3. Do not rely on dealer statements about sourcing eligibility. Dealers vary widely in their knowledge of IRS requirements, and some may quote outdated information from previous model years.

Point-of-sale transfer vs tax-time claim

Once you confirm eligibility, you face a choice: transfer the credit to the dealer at point of sale (available since January 2024) or claim it at tax filing. The checker's output includes guidance on which approach makes more sense for your situation:

• Transfer at point of sale: You receive an immediate price reduction. The dealer applies it to your cap cost. The IRS reimburses the dealer. You do not need sufficient tax liability to absorb the credit — the benefit is not limited by your liability when transferred. Best for most buyers.
• Claim at tax time: You pay full price at purchase, then receive a credit on your federal return. The credit reduces your tax liability — but if your liability is less than $7,500, the unused portion is forfeited (the credit is non-refundable unless transferred). Best only if your prior-year MAGI is over the cap but current year is under it (you cannot use POS transfer for future-year qualification).

One important restriction: not all dealers are registered to accept point-of-sale transfers. Ask specifically before assuming the price reduction will be applied at signing.

Used vehicle (Section 25E) rules

If you select "Used" EV, the checker applies Section 25E rules instead of 30D. Key differences:

• Credit amount is the lesser of $4,000 or 30% of the purchase price (not MSRP — actual sale price)
• Income caps are half the Section 30D thresholds: $75k single, $150k joint
• The vehicle must be at least 2 model years old; sold by a licensed dealer (not private sale); purchase price at or below $25,000
• The vehicle must not have previously been the subject of a Section 25E transfer (one credit per vehicle per lifetime)
• No sourcing test applies to Section 25E — only income, price, and vehicle age/condition tests

What to do with the results

If the checker shows you are eligible for the full $7,500:

1. Confirm the specific vehicle trim is on the current IRS list (list updates happen throughout the year)
2. Confirm your as-configured MSRP (with option packages) is under the applicable cap
3. Ask your dealer if they are registered for point-of-sale transfers
4. Use the break-even calculator with the credit applied to see your actual break-even timeline

If the checker shows you are ineligible due to income:

Consider whether your prior-year MAGI was lower. Consider whether you could purchase before year-end while still in a lower-income year. Consider whether a used EV under $25,000 qualifies under the lower Section 25E income thresholds ($75,000 single).

Where the data comes from

Credit rules: IRS Section 30D guidance and Section 25E guidance. Vehicle MSRP caps and classification: IRS qualified-vehicle list and Treasury Department guidance on vehicle classification. Income thresholds: current IRS inflation-adjusted figures as published for tax years 2025 and 2026.