Pre-owned Tax Credit Eligible Inventory

How the $4,000 Federal Used EV Tax Credit Works

To qualify for the federal used EV tax credit, both the buyer and the vehicle they’re purchasing need to meet specific qualifications established by the federal government. Visit the U.S. Department of Energy’s website for details on eligible vehicles and buyer requirements. Stevens Creek Toyota makes it easy to understand which vehicles may qualify for the credit.

Currently, tax filers must file Form 8936 with the IRS to claim a used EV tax credit, which they can then apply to reduce their federal tax liability.

The credit is nonrefundable, so you can’t get back more on the credit than you owe in taxes. Also, you can’t apply any excess credit to future tax years.