Spouses and federal EV tax credit in 2023

here is some info because the law changes substantially for EVs purchased in 2023. 

• The credit is now claimed upfront or at the point of sale, going towards the cost of the car; this means the credit will paid in advance and is fully refundable. Qualified EV dealers and salespersons are to address the value of the allowed credit for the vehicle(s) in question prior to the sale. This means the EV tax credit can be used in the form of cash or as a partial payment or down payment towards the vehicle.
  • If you claim the credit when buying the vehicle and were ineligible for it or your tax refund is subject to recapture, you may end up paying this credit back. In other words, advance payments of this credit are treated in the same manner as a tax refund would be treated.
• Because it is a tax credit, whether taken as a cash payment or paid directly towards the vehicle, this credit is not included in the gross income of the taxpayer and is not deductible for the dealer or salesperson.
• As a qualified buyer, you will put the vehicle into service, not resell it, and you will only claim this credit once in a three-year period.
• The 200,000 vehicle cap (described below) is being removed, thus certain Tesla and GM vehicles may qualify for the credit.
• A vehicle being purchased must be assembled in North America and the critical materials for the battery must be from the U.S. or a country with whom the U.S. has a free trade agreement with.
• The maximum MSRP or price of the vehicle must not exceed $55,000 for cars or $80,000 for SUVs, trucks, and vans. This means most Tesla vehicles will not qualify for the credit.
• To claim the credit, the purchaser's adjusted gross income cannot exceed $150,000 for the year for singles, $225,000 for heads of household, or $300,000 for married filing jointly to prevent wealthier Americans from taking advantage of additional tax savings.

you can search the web for other articles about the EV credit in 2023

certain regulations concerning the credit and recapture have not been issued.