Here’s what HIVE AI had to say about “Which tax breaks are available for electric vehicle purchases?”:

Federal tax breaks for electric vehicle purchases

New Clean Vehicle Credit (IRC §30D)

• Up to $7,500 for qualifying new electric, plug-in hybrid, or fuel cell vehicles
• Key requirements include: at least 7 kWh battery capacity, ability to recharge from external power, and final assembly in North America; seller must furnish a report to you and the IRS at sale or the vehicle isn’t eligible 1
• Income caps: $300,000 (MFJ), $225,000 (HOH), $150,000 (single/other); MSRP caps: $80,000 for vans/SUVs/pickups; $55,000 for other cars 2
• Point‑of‑sale option: You can apply the credit to reduce the purchase price at the dealership (starting 1/1/2024) 3
• Dealer registration and reporting is required for vehicle eligibility 4

Previously Owned Clean Vehicle Credit (IRC §25E)

• Lesser of $4,000 or 30% of the sale price for qualifying used EVs/plug‑in hybrids/fuel cell vehicles
• Requirements include: first resale to a qualified buyer since 8/16/2022, at least 2 model years old, purchased from a dealer, under 14,000 lbs, and subject to buyer income limits; can be applied at the point of sale starting 1/1/2024 5
• Vehicle must meet “used clean vehicle” rules including age, dealer sale, and weight thresholds 6
• Overview and point‑of‑sale details for used vehicles 3

Commercial Clean Vehicle Credit (IRC §45W)

• For vehicles acquired for business use (also often used for leases, where dealers claim 45W and may pass savings to lessees)
• Light‑duty vehicles can qualify for up to $7,500; heavy vehicles can qualify for up to $40,000 (example illustrates the $40,000 cap) 7
• The leasing pathway allows dealers to use 45W even when a vehicle wouldn’t qualify under §30D’s battery/sourcing rules; policymakers have referred to this as the “leasing loophole” 8

Home EV Charger Credit (IRC §30C)

• 30% of the cost of home charging equipment and installation, up to $1,000, for property in eligible low‑income or non‑urban areas 3
• Quick reference limits for individuals and businesses 3

Special notes and timing

• If you bought a new EV in 2022 or earlier, a different version of §30D may apply; the maximum credit was $7,500 with a battery‑size formula and no North America assembly rule 9
• Legislative change: The One Big Beautiful Bill Act (enacted July 2025) repeals the §30D, §45W, and §25E credits after September 30, 2025; §30C for charging equipment expires June 30, 2026. Plan purchases accordingly 8

Sources

1 – IRC § 30D(d) 📄 Summarize
2 – IRS – Publication 5866 NEW Clean Vehicle Tax Credit Checklist 📄 Summarize
3 – IRS – Publication 5886-A Clean Energy Tax Incentives for Individuals 📄 Summarize
4 – IRS.gov – Clean vehicle tax credits 📄 Summarize
5 – IRC § 25E(a) 📄 Summarize
6 – IRS – Publication 5724-D Credit for Previously Owned Clean Vehicles 📄 Summarize
7 – Treasury Regulation 1.6417-2 📄 Summarize
8 – Tax Foundation 📄 Summarize
9 – IRS Credits and Deductions – Credits for new electric vehicles purchased in 2022 or before 📄 Summarize

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