If you purchased a new electric pickup truck or fuel cell vehicle in 2023, you may qualify for a clean vehicle tax credit. For detailed eligibility information, refer to Publication 5866, New Clean Vehicle Credit Checklist (PDF).
When you buy a vehicle, the seller must provide vehicle quality information and register online, reporting similar information to the IRS. Otherwise, your vehicle won’t qualify for the tax credit. See Publication 5905, Information for Consumers Purchasing New or Used Clean Vehicles (PDF) for details.
Electric Pickup Truck Tax Credit Eligibility
You may be eligible for a tax credit of up to $7,500 under Section 30D of the Internal Revenue Code if you buy a qualifying new clean vehicle (electric vehicle (EV) or fuel cell vehicle), including pickup trucks. The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032. The credit is available to both individuals and businesses.
To be eligible, you must:
- Buy the vehicle for your own use and not for resale.
- Use it primarily in the U.S.
- Have a modified adjusted gross income (AGI) that doesn’t exceed:
- $300,000 for married filing jointly or surviving spouse.
- $225,000 for head of household.
- $150,000 for all other filers.
You can use your modified AGI from either the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in either year, you can claim the credit.
Electric Pickup Truck Tax Credit Amount
The credit amount depends on when you placed the vehicle in service (took delivery), regardless of purchase date.
Vehicles Placed in Service January 1 to April 17, 2023:
- Base amount of $2,500.
- Plus $417 for a vehicle with battery capacity of at least 7 kilowatt hours.
- Plus $417 for each kilowatt hour of battery capacity beyond 5 kilowatt hours.
- Capped at $7,500 total.
The minimum credit is $3,751 ($2,500 + 3 times $417), the credit amount for a vehicle with a minimum 7 kilowatt hour battery.
Vehicles Placed in Service April 18, 2023, or Later:
The vehicle must meet all of the same criteria listed above, and also meet new requirements for battery components and critical minerals to qualify for a credit up to:
- $3,750 if the vehicle meets the critical minerals requirement only.
- $3,750 if the vehicle meets the battery component requirement only.
- $7,500 if the vehicle meets both.
A vehicle that doesn’t meet either requirement is not eligible for a credit.
Qualifying Electric Pickup Truck Standards
To qualify, the vehicle must:
- Have a battery capacity of at least 7 kilowatt hours.
- Have a gross vehicle weight rating of less than 14,000 pounds.
- Be manufactured by a qualified manufacturer.
- Undergo final assembly in North America.
- Meet critical mineral and battery component requirements (effective April 18, 2023).
The sale only qualifies if:
- You buy the vehicle new.
- The seller reports required information to you at the time of sale and to the IRS.
Additionally, the manufacturer’s suggested retail price (MSRP) cannot exceed:
- $80,000 for vans, sport utility vehicles and pickup trucks.
- $55,000 for other vehicles.
How to Claim the Credit
To claim the credit, file Form 8936, Clean Vehicle Credits with your tax return. You’ll need to provide the vehicle identification number (VIN). The dealer will give you a paper copy of the sale time report when you complete your purchase. Keep this copy for your records as it confirms the dealer sent the report to the IRS on the date of purchase. You must file Form 8936 when filing your tax return for the year you take delivery of the vehicle.
