Caramel accepts the 2024 used EV tax credit both at the point of sale to reduce the amount you pay upfront or as a credit toward your tax when you file for the year. If you use the tax credit upfront, we simply reduce your bill by the amount of the credit up to $4,000, while we pay your seller the full purchase price.
When you go through the standard Caramel checkout process, we become the dealer of record on your sale so you can take advantage of the credit.
Caramel submits the necessary documents on our end and provides you with the forms you’ll need from us. Please note that you and the vehicle need to meet the requirements set forth by the IRS (Info Here and Here).
There are both vehicle and personal eligibility qualifications to claim the EV tax credit.
You can check HERE to find out whether your vehicle make and model qualifies. All vehicles must additionally:
Have a maximum sale price of $25,000
Have a model year at least two years prior to the current calendar year. For example, 2022 is the highest model year eligible when applying the credit in 2024
Not have been sold since August 16, 2022 to a retail buyer. This means a dealer could have bought the vehicle in a wholesale transaction after that date but could not have sold it to another customer
There are various personal eligibility criteria you can find HERE, including:
Be an individual who bought the vehicle for use and not for resale
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 purchase date
Have a maximum modified gross income of:
$150,000 for married filing jointly or a surviving spouse
$112,500 for heads of households
$75,000 for all other filers
The tax credit extends up to $4,000. However, it is capped at the lower of: a) 30% of your purchase price before taxes and fees, b) your income tax liability for the year.
When we prepare your documents, Caramel includes the necessary attestation and seller report for you to include with your tax filing.
If you elect to apply the tax credit upfront, we reduce your purchase price and submit for the rebate with the IRS. Otherwise, you'll receive the rebate when you file your annual taxes. In both cases, you'll simply add the seller report we've provided you to your tax filing.
You can claim the credit once every three calendar years.
Typically, private party vehicles sales do not qualify for the used ev tax credit. When you buy through Caramel, we operate as a licensed dealer. So your sale is no longer technically a private party sale.
That means a purchase that otherwise would qualify based on the vehicle and buyer now becomes eligible. To complete your transaction, Caramel buys your vehicle from the seller and sells it as a vehicle dealer to you.