While new EVs have become much more affordable in recent years, there are still a number of makes and models that are simply out of reach for many consumers.
This has led to EV buyers looking for ways to save money, and one of the most popular ways is the new EV tax credit ($7,500 at the point-of-sale now), and also the used EV tax credit ($4,000 at the point-of-sale).
In this article, we’ll focus on the used EV tax credit, and specifically, looking at whether or not it’s available on salvage Teslas and other salvage or rebuilt-titled EVs.
Disclaimer: The information provided in this article is intended for informational purposes only and should not be construed as tax, legal, financial, or accounting advice. While we are experts in electric vehicles, we are not qualified tax advisors. Please consult with your own financial or legal professionals before making any transaction-related decisions.
Used EV Tax Credit Overview
The used EV tax credit is a government incentive designed to make electric vehicles more affordable for a wider range of consumers—and who doesn’t like more affordable EVs?!
Under this program, buyers of qualifying used electric vehicles can receive a $4,000 federal tax credit at the point of sale. However, it’s important to note that this credit can only be claimed through a registered dealer.
At FindMyElectric, we partner with KeySavvy, who facilitates EV transactions, ensuring that you can take advantage of the used EV tax credit when purchasing your next electric vehicle.
When you choose KeySavvy to handle your payment and titling, the fact that they are a licensed dealer allows you to claim the used EV tax credit—even on private party sales!
Salvage Vehicles and the Used EV Tax Credit
One common question among potential buyers is whether salvage vehicles qualify for the used EV tax credit…
The answer is—yes, salvage title EVs do indeed qualify for the tax credit!
The reasoning behind this is that the IRS did not want to encourage title washing and there is no indication that Congress intended to exclude these vehicles. The rationale for this is detailed in their final published regulations, which you can find here at FederalRegister.gov.
Understanding the Used EV Tax Credit for Rebuilt Title EVs
For a salvage vehicle to be eligible for the used EV tax credit, it must be rebuilt and receive a rebuilt title, then it will qualify.
A rebuilt title signifies that the vehicle, previously deemed a total loss by an insurance company, has been repaired and passed all necessary inspections to confirm it is roadworthy. This rebuilt status ensures that the vehicle meets safety standards and is fit for public use.
When considering a rebuilt title EV, it’s important to verify that all repairs have been properly documented and that the vehicle has passed state-mandated inspections. This will not only ensure your eligibility for the tax credit but also provide peace of mind that your vehicle is safe to drive.
Where to Find Salvage and Rebuilt Titled Teslas and EVs
If you’re in the market for a salvage or rebuilt titled EV, FindMyElectric is the perfect place to start!
While most of our listed vehicles are clean-titled, our marketplace features a wide selection of electric vehicles, including those with salvage and rebuilt titles.
And most importantly, we partner with KeySavvy to facilitate transactions, ensuring that you can take full advantage of available tax credits and incentives.
By shopping FindMyElectric, you can browse listings, compare prices, and connect with dealers who understand the nuances of purchasing a salvage or rebuilt titled EV. Whether you’re looking for a Tesla or another electric vehicle, our platform makes it easy to find the right car at the right price!