Recurrent guide helps buyers determine if used EVs qualify for tax credit
With the first-ever tax credits for used electric vehicles having become effective on Jan. 1 as part of the Inflation Reduction Act, that shopper on your dealership’s lot is likely to have this question on their mind.
Does the used EV I’m interested in qualify for this tax credit?
With that in mind, EV analytics company Recurrent announced a tax credit eligibility tool on Tuesday to provide guidance.
The user simply punches in the vehicle identification number to see if the car is likely to qualify.
“I have spent hours poring over the tax credit bill with legal experts and the eligibility criteria can read like a puzzle,” said Liz Najman, policy research and communications manager at Recurrent, in a news release.
“This eligibility tool makes it much easier,” Naiman said. “In about 30 seconds, a car shopper will have a good idea if a used EV is likely to receive a tax credit – no tax law background required.”
Recurrent estimates that around 23% of the 34,800 used EV listings would qualify. As recently as October, it was just 12%, and Recurrent expects further growth in eligible vehicles with used-car prices easing.
Price is one of several criteria for the tax credit, which includes vehicle restrictions (battery size, model year, seller, sale price) and buyer restrictions (annual income, prior use of this tax credit).