Printable Form 2026

IRS Publication 5866-A – USED Clean Vehicle Tax Credit Checklist

IRS Publication 5866-A – If you’re shopping for a used electric vehicle (EV), plug-in hybrid (PHEV), or fuel cell vehicle (FCV) and wondering about the federal tax break, IRS Publication 5866-A is your essential resource. Titled the USED Clean Vehicle Tax Credit Checklist, this official IRS document (Rev. 1-2024, Catalog Number 94387A) provides a simple, step-by-step checklist to determine eligibility for the up-to-$4,000 Used Clean Vehicle Tax Credit under Internal Revenue Code Section 25E.

Important 2026 Update: Due to the One, Big, Beautiful Bill (Public Law 119-21, signed July 4, 2025), the credit is no longer available for vehicles acquired after September 30, 2025. However, if you entered a binding written contract and made a payment (including a trade-in or small down payment) by that date, you can still claim the credit when you take possession of the vehicle—even if delivery occurred later. Always verify your specific situation with a tax professional or the latest IRS guidance.

Download the official PDF here: IRS Publication 5866-A (PDF).

This guide breaks down everything from Publication 5866-A, cross-referenced with the current IRS Used Clean Vehicle Credit page (last updated November 13, 2025) and FuelEconomy.gov.

What Is the Used Clean Vehicle Tax Credit?

Enacted under the Inflation Reduction Act, this nonrefundable tax credit (transferable at the point of sale) helps buyers save on qualifying pre-owned clean vehicles. The credit equals 30% of the sale price, up to a maximum of $4,000.

Key advantages:

  • Applies to cars, SUVs, trucks, and vans under 14,000 pounds GVWR.
  • No manufacturer restrictions for fuel cell vehicles.
  • Can be transferred to the dealer for an immediate discount at purchase (if the dealer participates).

The credit first became available for purchases starting in 2023. Publication 5866-A serves as the quick-reference checklist buyers and dealers use at the time of sale.

Who Qualifies? The Official IRS Publication 5866-A Checklist

Publication 5866-A organizes eligibility into two main sections: Taxpayer Eligibility and Vehicle Eligibility. You must meet ALL criteria to qualify.

1. Taxpayer Eligibility (Check All That Apply)

  • Your modified adjusted gross income (MAGI) is at or below the limit for either the year you take possession or the prior year:
    • $150,000 or less (married filing jointly or qualifying surviving spouse)
    • $112,500 or less (head of household)
    • $75,000 or less (single, married filing separately, etc.)
  • You are an individual (not a business or trust) buying the vehicle for personal use, not for resale.
  • You are not claimed as a dependent on someone else’s tax return.
  • You have not claimed this used clean vehicle credit in the 3 years before the purchase date.
  • Note: 2023 was the first year the credit could be claimed.

Tip from IRS: If unsure about income limits, consult a tax advisor. You qualify if you fall under the threshold in at least one of the two years.

2. Vehicle Eligibility (Check All That Apply)

  • The vehicle is a qualifying plug-in electric vehicle (EV), plug-in hybrid electric vehicle (PHEV), or fuel cell vehicle (FCV) with a battery capacity of at least 7 kilowatt-hours.
  • Model year is at least two years earlier than the calendar year of purchase (e.g., 2023 or older for a 2025 purchase).
  • Sale price is $25,000 or less. The sale price includes:
    • Total amount agreed upon in the written contract
    • Delivery charges
    • Dealer-added accessories/equipment attached at sale
    • After application of manufacturer/dealer incentives
    • Excludes state/local taxes and fees required by law, financing, warranties, and insurance.
  • Purchased from a licensed dealer registered with the IRS (most dealerships are).
  • This is the first transfer of the vehicle to a qualified buyer since August 16, 2022 (verified via vehicle history report).
  • The dealer provides a Time of Sale Report (Seller Report) with VIN, make/model, battery capacity, sale price, and maximum credit amount.

Additional vehicle rules (noted in Publication 5866-A and IRS.gov):

  • Gross vehicle weight rating < 14,000 pounds.
  • Primarily for use in the United States.
  • Placed in service on or after January 1, 2023.

Pro Tip: Use the official tool at FuelEconomy.gov to check eligible models. Examples of commonly qualifying used vehicles include:

  • Chevrolet Bolt (2017–2023)
  • Nissan Leaf (2011–2023)
  • Tesla Model 3 (2017–2023)
  • Toyota Prius Prime PHEV (2017–2022)
  • Ford Mustang Mach-E (2021–2023)

Dealers report sales through the IRS Energy Credits Online portal.

How to Claim the Credit?

  1. At Purchase: Ask the dealer for the Time of Sale Report. Keep a copy for your records.
  2. Point-of-Sale Transfer (Optional): Elect to transfer the credit to the dealer for an instant discount (up to $4,000 off the price). The sale price for eligibility purposes stays the same.
  3. File Your Taxes: Report the credit on Form 8936 with your federal tax return for the year you place the vehicle in service. If transferred, the dealer reports it, but you still file Form 8936.
  4. Records to Keep: Time of Sale Report, purchase contract, vehicle history showing first transfer, and proof of income eligibility.

The credit is nonrefundable if not transferred (you can only reduce tax owed to zero; no refund of excess). No carryforward to future years.

Common Questions About IRS Publication 5866-A and the Used EV Tax Credit

Can I claim the credit on a private-party sale?
No — must be from a licensed dealer registered with the IRS.

What if my income is over the limit in the purchase year but under in the prior year?
You qualify if you meet the limit in either year.

Is the credit available in 2026?
No new acquisitions qualify after September 30, 2025. Check your contract date if you purchased around that time.

Where can I find the full list of eligible used vehicles?
Visit FuelEconomy.gov/taxused.shtml — the IRS and Department of Energy maintain the qualified list.

Do I need to repay the credit if I sell the vehicle later?
No repayment required for the Used Clean Vehicle Credit.

Why Use Publication 5866-A?

This one-page checklist eliminates guesswork. Dealers often reference it during sales, and buyers can review it before shopping. It’s the most trusted, official source straight from the IRS.

For the latest details, always visit the official IRS page: Used Clean Vehicle Credit and Clean Vehicle Tax Credits Overview.

Final Advice: Print or save Publication 5866-A before visiting a dealership. Verify the dealer is registered, get the Time of Sale Report, and confirm eligibility on FuelEconomy.gov. If you bought a qualifying used clean vehicle before the September 30, 2025 cutoff, don’t miss out on up to $4,000 in savings when you file.

Have questions about your specific purchase? Consult a qualified tax professional or contact the IRS directly. Rules can be complex, and professional advice ensures you claim every dollar you’re entitled to.

Sources: IRS Publication 5866-A (Rev. 1-2024), IRS.gov Used Clean Vehicle Credit page (updated Nov 13, 2025), FuelEconomy.gov, and official FAQs on the One, Big, Beautiful Bill modifications.