January 1, 2023 marked the dawn of another year for the world, but in the realm of EVs, more specifically purchases made by US consumers, the date kicked off a fresh start of new tax credits for vehicles both new and used. While much of the dust is still settling on the Capitol as it works to implement new qualifying terms for tax credits, we do have some information about what used EVs will and will not qualify. Here’s what we know so far.
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A used EV might be the way to go in 2023
Although the $7,500 federal tax credit has been extended for new EV purchases under revised qualifying terms, those current requirements leave a very limited the number of current EVs that qualify.
Many automakers are already pivoting their business strategies to move EV and battery assembly to US soil to once again qualify, but it will take time to establish those facilities and get them up and running.
In the meantime, it might be worth considering a used EV in order to take advantage of the revamped federal tax credit up to $4,000. Here’s how it works.
How the current tax credit works for used EVs
In a perfect world for consumers, any and all used EV purchases would qualify for tax credits from the US government, but that’s unfortunately not the case. As part of revised terms in the Inflation Reduction Act signed by President Biden, federal tax credits have been extended and include revamped benefits for used EV purchases. As long as they fit certain criteria. Per the IRS:
Beginning January 1, 2023, if you buy a qualified previously owned electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a previously owned clean vehicle tax credit under Internal Revenue Code Section 25E.
Used EVs no see revised terms that offers a credit equal to 30% percent of the sale price (up to $4,000). That should help consumers like yourselves get some change back in your pocket at the end of the fiscal year. As long as you stick to these terms as outlined by the IRS.
To qualify as a customer, you must:
Be an individual who bought the vehicle for use and not for resale
Must be an individual (no businesses)
Not be the original owner
Not be claimed as a dependent on another person’s tax return
Not have claimed another used clean vehicle credit in the 3 years before the EV purchase date
Modified adjusted gross income must not exceed $75k for individuals, $112,500 for heads of households, and $150k for joint returns
Additionally, in order for used EV to qualify for federal tax credits, it must:
Have a sale price of $25,000 or less
Have a model year at least 2 years earlier than the calendar year when you buy it
For example, a vehicle purchased in 2023 would need a model year of 2021 or older
Not have already been transferred after August 16, 2022, to a qualified buyer
Have a gross vehicle weight rating of less than 14,000 pounds
Be an eligible FCV or plug-in EV with a battery capacity of least 7 kilowatt hours (kWh)
Be for use primarily in the United States
Purchased from a certified dealer:
For qualified used EVs, the dealer reports required information to you at the time of sale and to the IRS
A used vehicle qualifies for tax credit only once in its lifetime
Here are all the Used EVs that qualify for tax credits
As promised, here is the current list of used EVs that qualify for tax credits in the US, per the IRS, separated by all-electric BEVs and plug-in hybrids (PHEVs).
It’s important to note that this is not the end all, be all list of used EVs that qualify for tax credits in the US. Once again, per the IRS:
Manufacturers of the vehicles listed below have provided appropriate information and have indicated that the vehicles are eligible for the credit provided other requirements are met.
This is simply the list provided by the government which will be continually updated by both them and us. Additionally, some of these EVs especially are 2020 or 2021 models, and it will be nearly impossible to find them on sale below $25k. If you do somehow luck out, more power to you, because you may qualify for additional savings.
As always, we recommend speaking with a tax professional and EV dealer directly in order to ensure what you and your new vehicle qualify for. Without further adieu, here are the all-electric models that currently qualify:
While tax credits for used EVs are newly revamped and may be the way to go for you personally, there are plenty of other options to get money back from Uncle Sam at the end of the fiscal year.
For instance, revised terms outlined in the Inflation Reduction Act went into affect January 1, 2023 and enable the extension of federal tax credits for new EV purchases through the next decade, while once again allowing EVs from American automakers like Tesla and GM to once again qualify.
That being said, the capitol is still trying to settle a lot of these terms to determine what vehicles qualify, so things are a bit cloudy at the moment, but you may be able to take advantage of tax credits before battery assembly requirements kick in later this year.
Whether it’s a new or used EV purchase that ends up being right for you, you may still be able to take advantage of additional perks at the state level, depending where you live. Credits, exemptions, and other benefits could be available for an EV purchase, lease, or for relevant equipment like home charger installation.
You can check out what EV-centric benefits may be available to you, sorted by state, here.
We’d like to reiterate once last time that we recommend doing your own research and speaking with a tax professional and EV dealer directly in order to ensure exactly what you and your vehicle purchase qualify for.
Good luck in EV your search!
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Saudi Aramco’s Ras Tanura oil refinery and oil terminal
Ahmed Jadallah | Reuters
Saudi state oil giant Aramco reported a 15.4% drop in net profit in the third-quarter on the back of “lower crude oil prices and weakening refining margins,” but maintained a 31.05 billion dividend.
The company reported net income of $27.56 billion in the July-September period, topping a company-provided estimate of $26.9 billion. The print is also a 5% drop from the previous quarter, which came in at $29.1 billion, as lower global oil prices, weaker demand and prolonged OPEC+ production cuts led by Saudi Arabia continue to impact crude prices.
The average selling price of oil for the second quarter of 2024 stood at $85 per barrel, but dropped to $78.7 per barrel during the third quarter, according to Saudi-based bank Al Rajhi capital, as non-OPEC supply volumes grew.
The oil firm said its year-on-year decline was partly offset by a “reduction in selling, administrative and general expenses primarily driven by a gain from derivative instruments, and a decrease in production royalties largely reflecting lower crude oil prices and a lower average effective royalty rate compared to the same quarter last year.”
Aramco’s dividend includes a base payout of $20.3 billion and an atypical performance-linked one of $10.8 billion. The Saudi government and the kingdom’s sovereign wealth vehicle, the Public Investment Fund, are the main beneficiaries of the dividend, holding stakes of roughly 81.5% and 16% in the company.
The remaining shareholding trades freely on Saudi Arabia’s Tadāwul stock exchange, with the company having finalized its second public share offering back in June.
Aramco’s earnings before Interest and Taxes (EBIT) came in at $51.45 billion in the third quarter, down 17% year-on-year. Aramco’s capital expenditure guidance was brought up 20% to $13.23 billion.
The company was trading at 27.45 riyals following the announcement, down 0.18% on the previous day.
The earnings align with a broader trend across oil majors, whose third-quarter profits have also suffered from declines in crude prices and refining margins. Aramco said it achieved average realized crude price of $79.3 per barrel in the third quarter, compared with $89.3 per barrel in the same period of last year.
Saudi Arabia, the world’s largest crude exporter who produces roughly 9 million barrels per day of crude at present, serves as the de facto leader of the OPEC+ oil producers’ alliance, a subset of whom agreed over the weekend to delay a planned December output hike by one month.
“Aramco delivered robust net income and generated strong free cash flow during the third quarter, despite a lower oil price environment,” CEO Amin Nasser said in a statement. “We also progressed our upstream developments, strengthened our downstream value chain, and advanced our new energies program as we continue to invest through cycles.”
The revenues will be a boon to the Saudi economy, which is currently undergoing a diversification process under Crown Prince Mohammed bin Salman’s legacy Vision 2030 scheme spanning a slew of high-cost infrastructure “gigaprojects.”
Earlier this year, Saudi Arabia’s Ministry of Finance cut the kingdom’s growth forecast to 0.8% in 2024, in a steep decline from a previous projection of 4.4%, and raised the outlook for the national budgetary shortfall to roughly 2.9% of GDP, from a prior indication of 1.9%.
On today’s episode of Quick Charge, Tesla’s Cybertruck is now available in Canada – and, like in the US, there’s no waiting! Plus, we’ve got an “actually” smart summon Tesla that’s actually stuck, GM reaches a sales milestone, and we get a brand-new title sponsor!
Today’s episode is the first with our new title sponsor, BLUETTI – a leading provider of portable power stations, solar generators, and energy storage systems.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonusLucid proves than an EV company can keep its promises while Xiaomi teams up with Chevrolet and Honda to prove – at least conceptually – that records are made to be broken. audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news!
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Mobile car care company Yoshi Mobility launched a DC fast charging EV mobile unit that it likens to “a supercharger on wheels.”
November 4, 2024 update: Yoshi Mobility will only be charging EVs on the side of the road now – it announced today that it’s selling its fleet fueling operation to EZFill Holdings (Nasdaq: EZFL).
It was originally founded as a direct-to-consumer, mobile fueling business in 2016, but now it’s going to focus on mobile EV charging, virtual vehicle inspections for partners like Uber and Turo, and onsite preventative maintenance.
Bryan Frist, Yoshi Mobility’s CEO & cofounder, said, “By spinning off our fuel business and focusing all of our energy on solving hair-on-fire problems that fleet owners face, we are meeting the changing needs of enterprise customers while making the future of transportation safer, cleaner, and more sustainable.”
May 22, 2024: Yoshi Mobility saw that its existing customers needed mobile EV charging in places where infrastructure has yet to be installed, so the Nashville-based company decided to bring the mountain to Moses.
“We recognized a demand among our customers for convenient daily charging, reliable private charging networks, and proper charging infrastructure to support their fleet vehicles as they transition to electric,” said Dan Hunter, Yoshi Mobility’s chief EV officer and cofounder.
The company says its 240 kW mobile DC fast charger, which can turn “any EV” into a mobile charging unit, is the first fully electric mobile charger available. It can provide multiple charges in a single trip but doesn’t detail how they charge the DC fast charger or who manufactured it. (I asked for more details, and they replied that they won’t disclose client names or the manufacturer of its DC fast charger yet.)
Yoshi is launching its mobile charger on two GM BrightDrop Zevo 600s and will introduce additional vehicles throughout 2024. It aims for full commercialization by Q1 2025. (I wonder if the Zevo 600 ever charges itself? Yes, I asked that too.)
Yoshi Mobility says it’s already deployed its EV charging solutions to service “major OEMs, autonomous vehicle companies, and rideshare operators” across the US. Its initial customers are made up of large EV operators managing “hundreds” of light-duty vehicles requiring up to 1 megawatt of energy per day that don’t yet have grid-connected EV chargers. I’ve asked Yoshi for details of who it’s working with, and will update if they share that info.
The company says pricing is based on location and enterprise charging needs. Once under contract for service, the service will be deployed to US-based customers within 10 days.
To date, Yoshi Mobility has raised more than $60 million, with investments from GM Ventures, Bridgestone, ExxonMobil, and Y-Combinator in Silicon Valley.
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