Desiree's eligibility for the New Clean Vehicle Credit under the Inflation Reduction Act depends on several factors, including the vehicle's MSRP and her modified adjusted gross income (MAGI).
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MSRP Limit: For new clean vehicles, there's a price cap. If the MSRP of the vehicle exceeds $55,000 for sedans or $80,000 for vans, SUVs, and trucks, the vehicle is not eligible for the credit. Since Desiree's vehicle MSRP is $49,999, it is below the $55,000 limit and therefore qualifies.
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Income Limit: There are also income limits to qualify for the credit. Individuals with a modified AGI over $150,000 (or $300,000 for married filing jointly) are not eligible. Desiree's MAGI is $89,500, which is well below the income threshold, making her eligible.
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Credit Amount: The maximum credit for new electric and plug-in hybrid vehicles is up to $7,500, and since Desiree's vehicle meets the requirements regarding battery and mineral components, she qualifies for the full amount.
Given that both the MSRP and the modified AGI requirements are met, the maximum credit available to Desiree under the New Clean Vehicle Credit is $7,500.
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