The 25E Used EV Tax Incentive provides up to $4,000 toward used EVs — including cars, SUVs, and light duty trucks — with a sale price of $25,000 or less.

Eligibility depends on vehicle type and income. To determine eligibility and help you find a used vehicle that qualifies for the tax credit, we’ll list all the factors you need to know. 

If you’re looking into buying a new EV, check out our breakdown of the 30D tax incentive instead. 

Used EVs must meet multiple requirements in order to qualify for this incentive, so make sure you talk with your car dealer before you make a purchase. They’re required by law to provide you with the information you need to ensure your EV purchase qualifies. 

You can find a complete list of the information your car dealer must provide on the IRS website.

Individuals and households that meet income requirements

Used EV purchases are subject to income caps based on income tax filing status. Those caps are:

• $150,000 for married filing jointly or a surviving spouse

• $112,500 for heads of households

• $75,000 for all other filers

If you fall at or below the income cap for your category, you're eligible for a 25E tax incentive!

To make sure that the EV you want to purchase qualifies for this tax incentive, talk to your dealer before making a purchase. 

If you’re interested in learning about requirements that used EVs must meet, we’ve broken them down below:

Qualifying used EVs must certain requirements

To qualify for the 25E tax incentive, a used EV must meet the following requirements:

• Have a sale price of $25,000 or less before additional fees

• Be purchased from a registered dealer. Private car sales (direct from owner to buyer) are not eligible.

• Have a model year two or more years earlier than the calendar year in which your vehicle purchase is made. For instance, to use the 25E tax incentive for a vehicle purchased in 2025 the model year must be 2023 or older.

• Weigh less than 14,000 pounds

• Have a battery capacity of least 7 kilowatt hours

• Be for use primarily in the United States

• Not have been previously resold after August 16, 2022 

• Come from a qualified manufacturer

Some used EVs meet these requirements, and some don’t. So, how do you know which used EV models you can purchase to qualify? 

The best way to know is to talk with your car dealer before you make a purchase. They’re required by law to provide you with the information you need to ensure your EV purchase qualifies. You can find a complete list of the information your car dealer must provide on the IRS website.