EV Affordability

Customers are responsible for determining their federal income filing status. Federal EV tax credits* have the following requirements for the purchaser’s Modified Adjusted Gross Income (MAGI), which is determined by IRS rules:  

• For new EV purchases:  Federal EV Tax Credit eligibility is subject to the following modified adjusted gross income limits: $150,000 for a single filing taxpayer, $225,000 for a head of household and $300,000 for joint filers. The MAGI rules generally do not apply to taxpayers that are not individuals, such as corporations.  

• For used EV purchases:* Federal EV Tax Credit eligibility is subject to the following modified adjusted gross income limits: $75,000 for a single filing taxpayer, $112,500 for a head of household and $150,000 for joint filers.

Unlike retail customers, EVs purchased and used for commercial fleet purposes have no income limitations. For 2025, the credit amount for commercial buyers is up to $7,500, but is subject to change in future years. 

Sedans with an MSRP more than $55,000 and SUVs, vans and pickup trucks with an MSRP more than $80,000 do not qualify for the EV credit.

Certain used electric and plug-in hybrid cars may be eligible for a federal used EV income tax credit, which will be the lesser of $4,000 and 30% of the sales price of the vehicle.  To qualify, the vehicle must: 

• Have a model year at least 2 years earlier than calendar year vehicle is being acquired 
• Be purchased from a dealership 
• Be the first used vehicle sale of the vehicle to a qualified buyer after 08/16/2022
• Have a sales price less than $25,000 

The deadline for claiming EV tax credits* for an electric car typically corresponds to the tax year in which the electric vehicle was purchased. Check the IRS website or consult with a tax professional to determine the specific deadline for your claim. 

At this point, EV tax credits* are still available. Because of the ongoing and fluctuating nature of the situation, you should consult with your tax professional for any questions you have regarding clean vehicle tax-credit eligibility and availability. 

Please see What are the eligibility requirements for EV tax credits? for consumer vehicle guidelines.

Commercial customers/businesses who purchase qualified electric vehicles and fuel-cell units can qualify for a commercial EV tax credit* of up to $7,500. Businesses may claim up to $7,500 per vehicle on their federal income tax return. There are no battery-component/mineral-sourcing or North American assembly requirements. 

• Credit is limited to $7,500 if GVWR is less than 14,000 lbs. Commercial EV tax credit lesser of 30% of the cost basis of the vehicle, incremental price of the EV over an equivalent ICE vehicle, or $7,500. 

 
Note: For 2025 incremental cost of GM vehicles exceeds the $7,500 maximum using the IRS Safe Harbor guidance and DoE incremental cost studies.  Links to this documents can be found here:   

IRS Safe Harbor / DoE Incremental Cost Study 
 
Credit eligibility is based upon the physical delivery date to the customer. The tax credit will go to the tax owner. This could be the FMC, Leasing Company or Corporation. 
 
Because it is a non-refundable tax credit, the customer needs to have a tax liability to utilize it. If they do not currently have any tax liability, they can apply it to the prior-year liability or hold it for up to 20 years to apply to a future liability. 

Refer all commercial customers to their company’s tax attorney for further information and guidance. 

Some factors that may affect the EV tax credit* amount: 

• Whether a vehicle is new or used 

• Whether a vehicle meets North American assembly and compliance with critical mineral and battery component sourcing requirements 

• Whether the vehicle will be used for commercial purposes 

• Adjusted Gross Income limits 

 • Vehicle MSRP