New Clean Vehicle Credit

The new clean vehicle credit in effect in 2023 has numerous requirements. In addition to meeting the manufacturing requirements (which the licensed dealer should be able to provide), there is an income limitation based on the lesser of the taxpayer’s modified adjusted gross income (AGI) for the year that the new clean vehicle is placed in service, or for the preceding year. The relevant modified AGI thresholds are as follows:

  • $300,000 for taxpayers married filing jointly or filing as a qualifying surviving spouse or qualifying widow(er)
  • $225,000 for Head of household
  • $150,000 for all other taxpayers

Modified AGI is the amount from line 11 of your Form 1040 plus:

  • Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income
  • Any amount excluded from gross income because it was received from sources in Puerto Rico or American Samoa

For more information see IRS Fact Sheet FS-2023-04, February 2023