Is there a tax credit for purchasing a hybrid vehicle during 2022? My client purchased a hybrid vehicle during 2022 and was told they could claim a credit on their tax return for 2022.

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Just-Lisa-Now-
Level 15
Level 15

I "think" plug in hybrids still qualify, see form 8936, you may have to drag out the instructions.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
qbteachmt
Level 15

(I confess to stealing this...)

Gosh, if only the IRS would provide some guidance on the regulations that apply:

https://www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before

 

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taxes96786
Level 9

A hybrid is a combo of gas and electric. They don't qualify. Do you use Pub 17 as a reference tool? If not, you should. You would get quicker answers.

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HOPE2
Level 9

PUB 17 says: 

New clean vehicle credit. The credit for new qualified plug-in electric drive motor vehicles has changed. This credit is now known as the clean vehicle credit. The maximum amount of the credit and some of the requirements to claim the credit have changed. The credit is still reported on Form 8936 and Schedule 3 (Form 1040), line 6f. For more information, see Form 8936.

This is not from IRS Tax Credits and Incentives

Some all-electric and plug-in hybrid vehicles qualify for a $3,700 to $7,500 federal tax credit. Many states also offer additional incentives for purchasing new EVs.

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