The federal clean vehicle tax credit eligibility checker walks through the three sequential IRS tests — income, MSRP, and sourcing — in the order the IRS applies them. Any single test failure eliminates or reduces the credit. This page documents every rule the checker implements, the data sources behind each test, and the limits of what a calculator can tell you about a tax question that ultimately requires your own professional judgment.

This is not tax advice. For a complex income situation, consult a tax professional. The checker is a rapid pre-screening tool — it surfaces likely eligibility and the dominant constraints, not a legally binding determination.

Income test logic

The checker applies the IRS income thresholds for each filing status, using the values effective for tax years 2025 and 2026:

New vehicle (Section 30D): single or MFS: $150,000 head of household: $225,000 married filing jointly: $300,000 Used vehicle (Section 25E) — exactly half: single or MFS: $75,000 head of household: $112,500 married filing jointly: $150,000

The checker compares the MAGI you enter against the applicable threshold. The IRS allows the lower of current-year or prior-year MAGI to be used. Our calculator asks for a single MAGI figure — enter the lower of your two years if you are near the threshold and want to apply the prior-year safe harbor.

If the income test fails, the checker returns the full credit as $0 regardless of whether the vehicle passes the MSRP and sourcing tests. There is no phase-out; the credit is binary at the threshold.

MSRP test logic

The checker applies the applicable MSRP cap based on the vehicle class selected:

Car (sedan, hatchback, coupe, wagon): cap = $55,000 SUV, truck, van: cap = $80,000 Used vehicle: no MSRP cap — purchase price must be ≤ $25,000

The vehicle class input uses the buyer's selection — "car," "SUV," "truck," or "van." The checker cannot independently verify whether the IRS classifies the specific vehicle you are considering in the same category you selected. The IRS classification controls for the actual credit; some vehicles marketed as SUVs or crossovers are classified as "cars" by the IRS and subject to the lower cap. Always verify the specific vehicle's classification on the IRS qualified-vehicle list before purchase.

If MSRP equals exactly the cap, the test passes (cap is a maximum inclusive threshold). If MSRP exceeds the cap, the test fails and the credit is zero regardless of income and sourcing results.

Sourcing test logic

The sourcing test is the most complex because it is vehicle-specific, not buyer-specific. The checker presents three options: sourcing fully met (both halves pass, full $7,500), sourcing partially met (one half passes, $3,750), or not met ($0 from sourcing). The "Unsure" option shows all three outcomes to illustrate the range.

The credit amount calculation:

credit_from_sourcing = 0 if critical_minerals_test passes: credit_from_sourcing += $3,750 if battery_components_test passes: credit_from_sourcing += $3,750 eligible_credit = min(income_eligible ? credit_from_sourcing : 0, msrp_eligible ? credit_from_sourcing : 0)

For Section 25E (used vehicle), there is no sourcing test. The credit amount is:

used_credit = min($4,000, 0.30 × purchase_price) applicable only if: income passes + purchase_price ≤ $25,000 + model_year ≤ (current_year − 2) + sold_by_dealer

Output: eligibility verdict and action checklist

The checker produces six outputs:

  • Eligible: Pass / Partial / Fail — the overall verdict
  • Credit amount: The dollar amount the credit is worth given the inputs
  • Income test: Pass or Fail with the relevant threshold shown
  • MSRP test: Pass or Fail with the applicable cap shown
  • Sourcing test: Pass (full) / Pass (partial) / Fail / Unsure
  • Action checklist: Next steps based on the verdict — e.g., "verify vehicle on IRS list," "confirm dealer is registered for point-of-sale transfer," "consult prior-year MAGI"

Limits of the checker

The checker cannot:

  • Verify whether the specific vehicle you are purchasing is on the current IRS qualified-vehicle list (the list updates throughout the year as manufacturers submit attestations)
  • Calculate your actual MAGI — you must supply this. The checker takes the figure at face value
  • Confirm whether the dealer is registered for point-of-sale transfers
  • Account for vehicles that qualify for a different credit amount at different trim levels of the same model
  • Provide legal or tax advice

The checker is a rapid pre-screening tool. Before committing to a purchase, always cross-reference the IRS qualified-vehicle list directly at IRS.gov and consult fueleconomy.gov for the specific model year, trim, and configuration you are purchasing.

A worked example — New SUV, Income Near Threshold

Buyer: married filing jointly. 2025 MAGI: $310,000 (over the $300k joint cap). 2024 MAGI: $285,000 (under the $300k joint cap). Considering a 2026 Rivian R1S Dual Standard ($69,900 MSRP, IRS classification: SUV). Vehicle sourcing: both tests pass (full $7,500 from sourcing based on current IRS list).

MAGI test: use lower of $310k or $285k = $285,000 → under $300k joint cap → PASS MSRP test: $69,900 ≤ $80,000 SUV cap → PASS Sourcing test: both halves pass → $7,500 Credit = $7,500 Recommendation: use point-of-sale transfer with prior-year 2024 MAGI as safe harbor

The buyer transfers the credit at POS using prior-year MAGI of $285,000 (which is under the $300k cap), avoiding any clawback risk at filing. Even though 2025 income will exceed the cap, the prior-year safe harbor protects the transfer.

A worked example — Used EV

Buyer: single filer, $68,000 MAGI. Purchasing a 2022 Chevrolet Bolt EV from a dealer at $22,500 (2 model years old as of 2025 purchase). No prior Section 25E claim on this vehicle VIN.

New or used: used → Section 25E rules apply Income test: $68,000 ≤ $75,000 single cap → PASS Purchase price: $22,500 ≤ $25,000 cap → PASS Vehicle age: 2022 model year, purchased 2025 → ≥ 2 years old → PASS Sold by dealer: yes → PASS Prior 25E claim: none → PASS Credit = min($4,000, 0.30 × $22,500) = min($4,000, $6,750) = $4,000

Full $4,000 credit available. Buyer may transfer at POS or claim at tax time. At $22,500 purchase price, the Section 25E credit represents a 17.8% effective discount from the federal government. Combined with any applicable state used-EV programs, this is among the most financially compelling EV purchase scenarios available.

Sources

Use the Federal EV Tax Credit Eligibility Checker →