Previously-Owned Clean Vehicle Credit (2026)
The federal Section 25E Previously-Owned Clean Vehicle Credit pays 30% of the sale price up to $4,000 toward a used EV — making this one of the most underused incentives in the country. The vehicle must be at least 2 model years old, sale price under $25,001, purchased from a licensed dealer (not private party), and the buyer must meet tighter income caps than 30D. The credit is transferable to the dealer at point of sale, just like 30D.
What this credit covers
30% of sale price up to $4,000. Vehicle sale price must be $25,000 or less. Tighter income caps than 30D.
- Used (previously-owned) EVs from a dealer
Eligibility quick check
Vehicle eligibility?
Must be at least 2 model years older than the year of purchase, sale price ≤ $25,000, purchased from a licensed dealer, and on its first qualifying transfer since IRA enactment (Aug 2022).
Income caps?
$150,000 MAGI married filing jointly, $112,500 head of household, $75,000 single — half the 30D thresholds.
How often can I claim 25E?
Once every three tax years.
How to claim 25E on your tax return
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Verify the VIN qualifies
Check fueleconomy.gov used EV list — the dealer must confirm this is the first qualifying transfer.
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Confirm dealer is registered with IRS Energy Credits Online
Only registered dealers can issue 25E. Ask before deposit.
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Decide: transfer at sale or claim at filing
Same choice as 30D. Transfer wins for most buyers because it cuts the down payment.
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File IRS Form 8936 with tax return
Report whether transferred or claimed at filing. Required for IRS audit trail.
Stacking with state and utility programs
25E stacks with state used-EV rebates and EV charger 30C. Cannot stack with 30D — used EVs use 25E, not 30D.