MSRP Limitations Apply for the Clean Vehicle Credit

For the first time in 2024, people who qualify for the Clean Vehicle Credit (CVC) may transfer the credit to a registered dealership as a down payment or in exchange for a discounted vehicle price. Vehicles eligible for the credit include many fully electric, plug-in hybrid, and fuel cell vehicles assembled in North America. To qualify, a new vehicle must have a manufacturer’s suggested retail price (MSRP) not exceeding $80,000 for vans, pickups, and SUVs, or $55,000 for all other passenger cars. This restriction is based solely on MSRP, not on the actual purchase price. The IRS recently reclassified some cars as SUVs, making them eligible for the CVC due to the higher MSRP limit. If you recently purchased an electric or plug-in hybrid vehicle but could not claim the CVC due to MSRP restrictions, check the updated list of eligible vehicles. If your vehicle now qualifies, you may be able to claim the credit on your 2024 tax return by obtaining a vehicle eligibility report from the dealer. Updated Qualifying Vehicles List: FuelEconomy.gov.