The credit is based on the battery capacity of the vehicle.If you bought a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D.The credit equals: $2,917 for a vehicle with a battery capacity of at least 5 kilowatt hours (kWh) Plus $417 for each kWh of capacity over 5 kWh The maximum credit is $7,500. It is nonrefundable, 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.IRS EV CreditFind information on credits for used clean vehicles and new EVs purchased in 2023 or after.

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markbaumkel

Question

Why Turbo tax reduce my$7500 ev credit to only $3900 for 2022 mustang mach purchased new July, 2022. No explanation provided?

Forum|Forum|3 years ago
January 19, 2023
1 reply
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TurboTax Self Employed Online

JohnB5677

The credit is based on the battery capacity of the vehicle.

If you bought a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D.

The credit equals:

$2,917 for a vehicle with a battery capacity of at least 5 kilowatt hours (kWh)
Plus $417 for each kWh of capacity over 5 kWh
The maximum credit is $7,500. It is nonrefundable, 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.

IRS EV Credit

Find information on credits for used clean vehicles and new EVs purchased in 2023 or after.

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