New Requirements for the Clean Vehicle Tax Credit

Effective January 1^st, 2023, new requirements must be met for you to qualify and claim the Clean Vehicle Tax credits. Here is what you need to know about the new conditions.

Commercial Vehicles and Leasing Vehicles

Vehicle Eligibility

• Acquired by a taxpayer for use or lease, not for resale
• Subject to depreciation
• Made by a qualified manufacturer and is treated as a vehicle under the “clean air act”
  • Vehicles with a GVWR (Gross Vehicle Weight Rating) less than 14K lbs must have a Battery with 7 kWh minimum capacity (or 15kwH for vehicles over 14k lbs)

Tax Credit Equals the Lesser of the Following

• 15% of vehicle cost for qualified PHEVs (Plug-in Hybrid Electric Vehicles)
• Incremental Cost for the “Clean Vehicle” vs comparable ICE (Internal Combustion Engine)
  • Note that for 2023, IRS Notice 2023-9 indicates that $7,500 will be accepted as the incremental cost for all street vehicles other than compact car PHEVs

Commercial Clean Vehicle Tax Credit – Lease

• Commercial Clean Vehicle Tax Credit will be the access to this benefit through leasing
• January Capitalized Cost Reduction Available for Leases from the following lenders:
  • Chrysler Capital
  • Ally Bank
  • Stellantis Financial Services

Retail Vehicles

Vehicle Eligibility

• Vehicle Assembled in North America continues (Through March 2023)
  • Chrysler Pacifica PHEV, Wrangler 4xe, Grand Cherokee 4xe remain eligible
• Vehicles with a GVWR of less than 14K lbs
• Must have a Battery with a 7 kWh min capacity
• MSRP less than or equal to $80K for SUVs, Vans, Trucks
• MSRP less than or equal to $55K for all other vehicles

Customer Eligibility (Adjusted Gross Income)

• Adjusted Gross Income less than or equal to $150K (Single), $225K (Head of Household), $300K (Married Filling Joint Return)