In an effort to make all-electric vehicles more attractive to the everyday buyer, the U.S. federal government implemented a $7,500 EV tax credit for eligible new vehicles, of which a number of GM electric vehicles qualified for. Now, a similar incentive applies to used vehicles, albeit with notable differences.
As outlined by the Environmental Protection Agency (EPA), those who purchased a used electric vehicle or fuel-cell vehicle (FCV) from a licensed dealer may be eligible for a tax credit up to $4,000. Unfortunately, used purchases made before the 2023 calendar year do not apply for this incentive.
In order to qualify, vehicles must meet a set of requirements, including:
- Sale price less than $25,000
- Be of a model year at least two years younger than the calendar year in which it was purchased
- Not have been transferred to a qualified buyer after August 16th, 2022
- Have a Gross Vehicle Weight Rating (GVWR) less than 14,000 pounds
- Boast a battery capacity of at least seven KWh
For those who want to know if their used EV purchase qualities for this new incentive, be sure to check out the U.S. Department of Energy’s website for the full list.
This new EV tax credit now applies to quite a few used General Motors electric vehicles, including:
|Cadillac CT6 PHEV
|Chevy Bolt EV
|Chevy Bolt EUV
|Chevy Spark EV
It’s worth noting that EREV refers to an extended-range electric vehicle. More specifically, this means that the wheels are driven by electric motors, while the gasoline engine only kicks in to replenish the battery pack. In addition, although the EPA doesn’t list the Cadillac CT6 PHEV as an eligible electric vehicle, the used Caddy seemingly meets all the requirements for the tax credit.