WASHINGTON — Car dealers looking to move more used electric vehicles off their lots say guidance is needed from the U.S. Treasury Department to confirm what's included in the pre-owned-EV tax credit's sales price cap.
As part of the Inflation Reduction Act, qualified buyers could get up to $4,000 for the purchase of an eligible used EV under Internal Revenue Code Section 25E. Vehicles must be at least two model years old and cost $25,000 or less, but they are not subject to the same stringent battery sourcing rules as the revamped tax credit for new sales of personal EVs, known as Section 30D.
The Treasury in December clarified what's counted in the retail price for new EVs, specifying that "optional equipment physically attached to the vehicle at the time of delivery to the dealer" is included, while optional items added by the dealer as well as destination charges, taxes and fees are not. However, it did not specify what's counted toward the sales price for used EVs.