Asked by T

Mason is filing single. His modified adjusted gross income is $68,000. He purchased a previously-owned electric vehicle on January 15, 2024 for $20,000 from a dealer. The vehicle meets all the requirements for the Previously Owned Clean Vehicle Credit. What is the maximum credit available assuming all qualifications are met under the rules for the Credit for Previously Owned Clean Vehicles?
$1,000
$4,000
$6,000
$7,500

All Answers 1

Answered by GPT-5 mini AI
$4,000

Reason: The Previously Owned Clean Vehicle Credit is the lesser of $4,000 or 30% of the sale price. 30% of $20,000 = $6,000, but the cap is $4,000. Mason’s MAGI ($68,000) is below the $75,000 single threshold and the $20,000 purchase is under the $25,000 vehicle price limit, so he qualifies.