BOLT EV Qualifies for the Used Tax Credit

If you’re considering purchasing an electric vehicle (EV) in 2023, it might be worth looking into a used one to take advantage of the revamped federal tax credit up to $4,000. In this blog post, we’ll go over what we know about how the Bolt EV qualifies for the used EV tax credit.

The $7,500 federal tax credit has been extended for new EV purchases under revised qualifying terms, but those current requirements leave a very limited number of current EVs that qualify. Many automakers are already pivoting their business strategies to move EV and battery assembly to US soil to once again qualify, but it will take time to establish those facilities and get them up and running.

In a perfect world for consumers, any and all used EV purchases would qualify for tax credits from the US government, but that’s unfortunately not the case. As part of revised terms in the Inflation Reduction Act signed by President Biden, federal tax credits have been extended and include revamped benefits for used EV purchases, as long as they fit certain criteria.

To qualify as a customer, you must:

• Be an individual who bought the vehicle for use and not for resale
• Must be an individual (no businesses)
• Not be the original owner
• Not be claimed as a dependent on another person’s tax return
• Not have claimed another used clean vehicle credit in the 3 years before the EV purchase date
• Modified adjusted gross income must not exceed $75k for individuals, $112,500 for heads of households, and $150k for joint returns

Additionally, in order for a used EV to qualify for federal tax credits, it must:

• Have a sale price of $25,000 or less
• Have a model year at least 2 years earlier than the calendar year when you buy it
• Not have already been transferred after August 16, 2022, to a qualified buyer
• Have a gross vehicle weight rating of fewer than 14,000 pounds
• Be an eligible fuel cell vehicle (FCV) or plug-in EV with a battery capacity of least 7-kilowatt hours (kWh)
• Be for use primarily in the United States
• Purchased from a certified dealer
• A used vehicle qualifies for tax credit only once in its lifetime

The Bolt EV from Chevrolet (GM) is an all-electric model that currently qualifies for the full $4,000 tax credit. 

As always, we recommend speaking with a tax professional and EV dealer directly to ensure what you and your new vehicle qualify for. 

Make/Model/Year(s) Full Tax Credit CHEVROLET (GM) 

Bolt EV (2017-2021) $4,000 

Spark EV (2014-2016) $4,000

Whether it’s a new or used EV purchase that ends up being right for you, you may still be able to take advantage of additional perks at the state level, depending on where you live. Credits, exemptions, and other benefits could be available for an EV purchase, lease, or relevant equipment like home charger installation.

A used EV might be the way to go in 2023 to take advantage of the federal tax credit up to $4,000.  Make sure to do your own research and speak with a tax professional directly.

Stay up to date on our 2017-2021 Bolts we have available for sale by clicking the link below. This will have all the 2017-2021 Bolts with a sales price up to $25,000. We can help with vehicle eligibility questions on these vehicles. You will need to cover your personal income questions with your tax professional to see about eligibility on that front.

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