Check eligibility for the Clean Vehicle Credit (Section 30D). Up to $7,500 new / $4,000 used.
Estimated EV credit
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MAGI eligibility
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MSRP/price eligibility
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Your breakdown
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Two gates before a single dollar of credit
The Clean Vehicle Credit under Section 30D is worth up to $7,500 on a new electric vehicle and up to $4,000 on a qualifying used one, but it is gated. Two income and price tests decide whether you get the full amount or nothing at all. This calculator checks both gates and tells you which one, if either, knocks you out. There is no partial credit for being slightly over a limit. You are either under the line or you are not.
The first gate is your modified adjusted gross income. For a new vehicle the cap is $150,000 if you file single, $225,000 as head of household, and $300,000 married filing jointly. Used vehicles use tighter caps of $75,000 single and $150,000 joint. A useful quirk written into the rule: you can qualify using your MAGI from either the year you take delivery or the prior year, whichever is lower. The second gate is price. A new car cannot have a manufacturer's suggested retail price above $55,000, while SUVs, trucks, and vans get an $80,000 ceiling. Used vehicles must have a sale price of $25,000 or less.
Walking a $45,000 sedan through the tests
Consider a single filer with $120,000 of MAGI buying a new $45,000 electric sedan. The calculator runs each gate in turn.
Both tests pass, so the full $7,500 is on the table. Push the MSRP to $58,000 and the price gate fails, dropping the credit to zero. Raise MAGI to $160,000 and the income gate fails instead. The chart below shows how the same buyer goes from full credit to nothing the moment either limit is crossed.
A credit, not a deduction, and it once needed tax to absorb
The $7,500 is a credit, which reduces your tax bill dollar for dollar, far more valuable than a deduction that merely lowers taxable income. Historically the Section 30D credit was nonrefundable, meaning if your federal tax liability was below $7,500 you forfeited the unused portion. That detail still matters for buyers with low tax bills who claim the credit on their return using Form 8936. It is the reason a retiree with modest taxable income sometimes could not capture the full amount even when the vehicle qualified.
Taking the money at the dealer instead
Since 2024, buyers can transfer the credit to a registered dealer at the point of sale, turning it into an immediate price reduction rather than waiting to file. The dealer knocks $7,500 off the purchase and gets reimbursed by the IRS. This is a meaningful upgrade because it sidesteps the old nonrefundable trap and puts cash in your pocket the day you drive off. One caution worth flagging: if you transfer the credit but your income later turns out to exceed the MAGI cap, you may have to repay it when you file. Confirm your income eligibility before electing the transfer, not after.
Who should run this and what it cannot see
This is for anyone shopping a specific new or used EV who wants a fast read on eligibility before falling in love with a model. It is a screening tool, not the final word. It checks the two gates that disqualify most buyers, but the credit also requires final assembly in North America and increasingly strict battery component and critical mineral sourcing rules that change by model and model year. A vehicle can pass both gates here and still earn only a partial credit, or none, because of where its battery was built. Always verify the specific VIN with the dealer and check the qualified vehicle list at fueleconomy.gov before you count on the money.
Does a lease qualify for the EV credit?
Differently. A leased EV is typically claimed by the leasing company under the commercial clean vehicle credit, Section 45W, which has no MAGI or MSRP caps and no North American assembly requirement. The lessor often passes the savings through as a lower lease payment, which is why some vehicles that fail the purchase tests are still attractive as leases.
Which MAGI year should I use?
Use the lower of your MAGI in the year you take delivery or the prior year. If your income spiked this year but was under the cap last year, you still qualify. This flexibility is built into the statute specifically so a single high-income year does not cost you the credit.
Is the price test based on MSRP or what I actually pay?
For new vehicles it is the manufacturer's suggested retail price, not your negotiated price. A car with a $56,000 MSRP fails the $55,000 cap even if you negotiate the out the door price below $55,000. For used vehicles, the test is the actual sale price of $25,000 or less.