Submitted By: someone
Answered: April 22, 2022 2:24 am

I bought an electric car. Can I take a tax credit?

Whether you can take a tax credit for a plug-in electric vehicle (EV) depends on the manufacturer. The tax law set a 200,000 sales limit on manufacturers for these vehicles and Tesla and GM have already passed this limit; no credit for the purchase of a Tesla or GM EV is currently allowed. For other plug-in electric vehicles, the amount of the credit varies with the model. The IRS has a list of qualifying vehicles.

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Tax Glossary

Return of capital

A distribution of your investment that is not subject to tax unless the distribution exceeds your investment.

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