Carvana will apply a clean vehicle tax credit at checkout for used EVs

You will still need to file your taxes correctly using IRS Form 8936, and you have to agree to transfer the credit to Carvana once you do file. So, while it’s not making tax season any easier, Carvana is offering a lower cost of entry to buy an electric vehicle, which could help push customers interested in EVs to take the leap.

You can now take advantage of the offer on Carvana’s app or website by searching for EVs or plug-in hybrids with a green tax credit banner. As the Biden administration’s Inflation Reduction Act outlines, not every used clean vehicle is eligible. It has to have at least a 7kWh battery and a price less than or equal to $25,000, including shipping and delivery charges. It’s also only valid on a vehicle’s previous two model years.

I don’t know if you care, but most eligible Spark EVs are gone.
Screenshot: Umar Shakir / The Verge

For instance, if you want a Chevy Spark EV because it’s small, zippy, and fits in any parking space, only the 2015 and 2016 models are eligible. Carvana is selling them for about $11,000 to $14,000 each, so the incentive could bring it down to $10,000 or under (although, as of writing, I’ve noticed some of them no longer have the advertised discount banner).

At checkout, you must confirm your eligibility, which includes the requirement that your income not exceed $150,000 for a married couple filing jointly, $112,500 when filing as the head of a household, or $75,000 for a married couple filing separately, individually, or other.

The credit can’t be claimed for vehicles already purchased with the used clean vehicle tax credit or if you have used that benefit in the past three years (which is not technically possible yet). Either way, take advantage of it sooner rather than later because Republicans may end up killing it eventually.

Source link