< Back to IRS

Hailey O'Leary

Can I claim multiple EV tax credits for different electric vehicles?

I'm about to trade in my current Tesla for a new electric vehicle from a different manufacturer and I'm confused about the EV tax credit situation. When I purchased my Tesla back in 2023, I received the $7,500 tax credit which was great. Now, the salesperson at this other dealership told me with complete confidence that "you only get one EV credit per household per lifetime" - which sounds really restrictive and honestly doesn't make sense to me. I've been searching all over the IRS website trying to verify this "one per lifetime" rule but I can't find anything that actually says that. Is the dealership feeding me a line, or is this really true? If it is true, could someone please point me to the specific IRS rule that states this? I'd love to get another tax credit but don't want to make purchase decisions based on incorrect information. Thanks in advance for any help with this!

Cedric Chung

•

This dealer is definitely not giving you accurate information. The EV tax credit (officially called the Clean Vehicle Credit) does not have a "per household per lifetime" limitation. Each qualifying clean vehicle purchase can potentially qualify for the credit. The current rules focus on income requirements, vehicle price caps, and manufacturing requirements - not on how many credits you've claimed in the past. Some dealers unfortunately don't understand the tax credits fully. What you need to consider are these key requirements for the current credit: - Your income must be below certain thresholds - The vehicle must meet manufacturing and battery component requirements - The vehicle price must be under the caps ($55,000 for cars, $80,000 for SUVs/trucks) - The vehicle must be new (used EVs have a separate credit) Not all electric vehicles qualify for the full credit anymore due to battery component requirements, so check if your new EV specifically qualifies before purchasing.

0 coins

Talia Klein

•

Thanks for this information. I'm wondering if there's an annual limit though? Like can I buy two EVs in the same tax year and get the credit for both?

0 coins

Cedric Chung

•

There's no specific annual limit on the number of clean vehicle credits you can claim. If you purchase multiple qualifying EVs in the same year, you could potentially claim the credit for each qualifying vehicle. That said, most people don't purchase multiple new vehicles in a single year, and your practical ability to claim multiple credits would still depend on having enough tax liability to offset with the credits. Remember that these are non-refundable tax credits, so you need sufficient tax liability to utilize them fully.

0 coins

After dealing with confusing EV credit info from dealers, I highly recommend using https://taxr.ai to verify your eligibility. I was in a similar situation when trading in my old EV for a new one and got completely contradictory information from three different dealerships. I uploaded my tax return and previous vehicle purchase docs to taxr.ai, and they analyzed everything and confirmed I could claim another clean vehicle credit. They even helped me understand how the new EV credit would affect my overall tax situation based on my specific income and previous credits claimed. Saved me from missing out on $7,500!

0 coins

PaulineW

•

How exactly does this service work? Does it just tell you if you're eligible or does it also help with the actual tax filing?

0 coins

I'm skeptical about using services like this - couldn't you just call the IRS and get the same information for free?

0 coins

The service analyzes your specific tax situation by reviewing your documents. It doesn't just tell you if you're eligible - it shows you exactly how the credit will impact your overall tax situation based on your income, deductions, and other credits. They provide a detailed report explaining everything. Regarding calling the IRS, good luck with that approach. When I tried calling about EV credit questions, I was on hold for over 2 hours before giving up. Even when you do get through, the representatives often give general information rather than analyzing your specific situation. They won't look at your documents and tell you exactly how a new credit will affect your particular tax situation.

0 coins

PaulineW

•

Just wanted to update after trying taxr.ai that the original commenter mentioned. It was actually super helpful! I uploaded my tax documents and purchase agreement for the EV I was considering, and they confirmed I'm eligible for the full $7,500 credit despite having claimed one for a different EV two years ago. The detailed report showed exactly how the credit would affect my 2025 taxes and even flagged that I needed to make sure the car was actually delivered this year (not just ordered) to claim it on this year's taxes. This saved me from making a costly assumption about timing! Definitely worth it if you're making a big purchase decision based on tax implications.

0 coins

Chris Elmeda

•

If you're getting pushback from dealers or confusing information about EV tax credits, you can actually speak directly with an IRS agent to get the official answer. I know that sounds impossible these days, but I used https://claimyr.com and got through to an IRS representative in less than 20 minutes instead of waiting for hours. When I called the IRS directly about my EV credit question, I kept getting disconnected after waiting 2+ hours. With Claimyr, they navigated the phone tree for me and called when an agent was ready. The IRS agent confirmed there's no "one per lifetime" limit on the Clean Vehicle Credit. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent even directed me to the exact IRS publication that explains the current requirements. Way better than trusting random dealers who might not understand tax law.

0 coins

Jean Claude

•

How does this actually work though? I thought the IRS phone system was just permanently overloaded. Does this service have some special access or something?

0 coins

Charity Cohan

•

This sounds like a complete scam. There's no way to "skip the line" with the IRS. They're not going to let some random company get priority access over regular taxpayers.

0 coins

Chris Elmeda

•

They don't have special access - they use technology to navigate the phone system and constantly redial when there are disconnects. It's basically like having someone else do the frustrating wait process for you. When they reach a human, they call you to connect with the agent. No, they're not skipping any lines. They're just handling the most annoying part - waiting on hold and dealing with disconnects. They use automated systems to keep trying different IRS phone lines until they get through, then they connect you. The IRS doesn't know or care how you got through - you're just another caller once connected. I was skeptical too but it actually works, and the time saved was absolutely worth it when dealing with an important tax question.

0 coins

Charity Cohan

•

I have to come back and admit I was completely wrong about Claimyr. After being so skeptical in my previous comment, I decided to try it anyway because I was desperate to resolve my EV credit question before making a purchase decision. It actually worked exactly as described. I got connected to an IRS agent within about 30 minutes (compared to my previous 3 failed attempts waiting 2+ hours each time). The agent confirmed that there is absolutely NO lifetime limit on EV tax credits per household. You can claim the credit for each qualifying vehicle purchase, provided you and the vehicle meet the current requirements for that tax year. The agent specifically pointed me to IRS Form 8936 instructions which contain all the current requirements. Nothing in there about lifetime limits. Dealership was 100% wrong.

0 coins

Josef Tearle

•

I think the dealership might be confusing the old rules with the new ones. The EV tax credit rules changed significantly under the Inflation Reduction Act in August 2022, and then changed AGAIN in April 2023 with the battery component requirements. You need to check the specific vehicle you're planning to buy on the official list: https://fueleconomy.gov/feg/tax2023.shtml Not all EVs qualify for the full credit now because of requirements about where the battery components and critical minerals are sourced. Some only get partial credit or no credit.

0 coins

Shelby Bauman

•

Does it matter where and when you buy the EV? I'm looking at a used one from a private seller.

0 coins

Josef Tearle

•

Yes, it definitely matters where and when you buy the EV. For new EVs, they must be purchased from a dealer, not a private seller. The vehicle must undergo final assembly in North America to qualify. For used EVs, there's actually a separate credit (up to $4,000 or 30% of the sale price, whichever is less). Used EVs must be purchased from a dealer (not private sale), be at least 2 years old, cost less than $25,000, and it's the first transfer of the vehicle since August 16, 2022. The income limits are also different for used EV credits compared to new ones.

0 coins

Quinn Herbert

•

One important thing to remember is that the EV tax credit is non-refundable. So you can get multiple credits over your lifetime, but only if you have enough tax liability each time to absorb the credit. Example: If your total federal tax liability for the year is only $5,000, you can only use $5,000 of the $7,500 credit. The remaining $2,500 is lost - it doesn't carry over to future years.

0 coins

That's a really important point I hadn't considered. My tax liability is usually around $12,000 annually, so I should be able to use the full credit. Is there any way to know for sure before I purchase? I'm a bit nervous about dropping this much money without being 100% certain about the tax benefit.

0 coins

Quinn Herbert

•

You can get a pretty good estimate by looking at last year's tax return, specifically line 24 on your Form 1040, which shows your total tax. If that amount was over $7,500 and your income/deductions will be similar this year, you should be able to use the full credit. For more certainty, you could also consider meeting with a tax professional who can review your specific situation and projected income for this year. They can help you estimate your tax liability and confirm if you'll be able to utilize the full credit. Some tax software programs also allow you to run "what-if" scenarios to see how a new tax credit would affect your specific situation.

0 coins

The dealership is absolutely wrong about the "one per lifetime" rule - there's no such restriction on EV tax credits. I've actually claimed the credit twice myself: once in 2022 for a Chevy Bolt and again in 2024 for a Ford Mustang Mach-E. Both times I received the full $7,500 credit without any issues. What the dealership might be thinking of is that Tesla and GM temporarily lost eligibility for the credit a few years ago when they hit the 200,000 vehicle sales cap under the old rules. But that cap was completely eliminated with the Inflation Reduction Act changes in 2022. The current rules focus on vehicle price limits, income thresholds, and manufacturing requirements - not on how many times you've claimed the credit. As long as each vehicle purchase meets the current eligibility requirements and you have sufficient tax liability to use the credit, you can claim it multiple times. I'd suggest double-checking that your new vehicle is on the eligible list at fueleconomy.gov since not all EVs qualify for the full credit anymore due to battery component sourcing requirements.

0 coins

Mia Alvarez

•

This is really helpful to hear from someone who's actually done it twice! I was getting so frustrated with the conflicting information from dealers. It's good to know that the old Tesla/GM cap situation might be what's causing the confusion. Quick question - when you claimed the credit the second time, did you have to do anything special on your tax return to show it was for a different vehicle, or is it pretty straightforward? I'm wondering if there's any extra paperwork or documentation needed when you've claimed it before.

0 coins

The dealership is definitely giving you incorrect information. There is no "one per household per lifetime" rule for EV tax credits. I work in tax preparation and see clients claim multiple EV credits regularly. The Clean Vehicle Credit can be claimed each time you purchase a qualifying electric vehicle, as long as you meet the current requirements for that tax year. The key restrictions are: - Income limits ($300K for joint filers, $225K for head of household, $150K for single) - Vehicle price caps ($55K for cars, $80K for SUVs/trucks/vans) - Final assembly in North America - Battery component and critical mineral sourcing requirements The confusion might stem from the old manufacturer cap that used to limit Tesla and GM vehicles, but that was completely eliminated in 2022 with the Inflation Reduction Act. I'd recommend checking if your specific new vehicle model qualifies at fueleconomy.gov before making the purchase, since many EVs now only qualify for partial credits or no credit due to the battery sourcing requirements. But the "lifetime limit" claim from your dealer is completely false.

0 coins

Pedro Sawyer

•

Thanks for the detailed breakdown! As someone new to this community and considering my first EV purchase, this is incredibly helpful. I was almost scared off by similar misinformation from a dealer who told me the same "lifetime limit" story. Your point about checking the specific vehicle on fueleconomy.gov is crucial - I had no idea that different models might qualify for different amounts due to battery sourcing. It's frustrating that dealers aren't better informed about these tax implications, especially when they're such a big factor in purchase decisions. One follow-up question: when you mention "partial credits" due to battery requirements, what does that typically look like? Is it like $3,750 instead of $7,500, or are there other amounts?

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,095 users helped today