EV Stimulus Payment: What is the max amount you can get in tax refund for an electric vehicle?

Even though federal stimulus checks have ended, several states continue to provide direct payments to help residents cope with economic challenges and inflation.

These payments not only offer financial relief but also encourage sustainable energy practices such as purchasing electric vehicles or installing clean energy solutions.

For the American Government, protecting the environment is at the forefront of the most important policies that fight against climate change. Getting carbon emissions as low as possible from fossil fuels has made millions of Americans search for options to buy electric or hybrid vehicles.

The Alternative Fuel Vehicle Rebate program is being extended in its current form until August 31, 2024 and will be renewed under new program guidelines starting September 1.

How to get full $7,500 EV tax credit?

As stated by the IRS: "You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032."

The credit is available to individuals and their businesses.

To qualify, you must:

• Buy it for your own use, not for resale
• Use it primarily in the U.S.
• In addition, your modified adjusted gross income (AGI) may not exceed:
• $300,000 for married couples filing jointly or a surviving spouse
• $225,000 for heads of households
• $150,000 for all other filers

You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the 2 years, you can claim the credit.

If you do not transfer the credit, it is nonrefundable when you file your taxes, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.