Clean Vehicle Tax Credit

January 10th, 2023 by

New Requirements for the Clean Vehicle Tax Credit

Alfa Romeo Tonale

Effective January 1st, 2023, new requirements must be met for you to qualify and claim the Clean Vehicle Tax credits. Here is what you need to know about the unique conditions that will affect the all-new Alfa Romeo Tonale.

Leasing Vehicles

Vehicle Eligibility

  • Acquired by a taxpayer for use or lease, not for resale
  • Subject to depreciation
  • Made by a qualified manufacturer and is treated as a vehicle under the “clean air act”
    • Vehicles with a GVWR (Gross Vehicle Weight Rating) less than 14K lbs must have a Battery with 7 kWh minimum capacity (or 15kwH for vehicles over 14k lbs)

Tax Credit Equals the Lesser of the Following

  • 15% of vehicle cost for qualified PHEVs (Plug-in Hybrid Electric Vehicles)
  • Incremental Cost for the “Clean Vehicle” vs comparable ICE (Internal Combustion Engine)
    • Note that for 2023, IRS Notice 2023-9 indicates that $7,500 will be accepted as the incremental cost for all street vehicles other than compact car PHEVs
Posted in Uncategorized