EV Tax Credit Income Limits 2026 (30D MAGI Cap Explained)
The federal 30D Clean Vehicle Credit caps eligibility at $300,000 Modified Adjusted Gross Income (MAGI) for married filing jointly, $225,000 for head of household, and $150,000 for single filers. The IRS allows you to use the lower of your prior tax year MAGI or the year of delivery — meaningful flexibility for high-income years. If you transfer the credit to the dealer at point of sale and later exceed the cap in both relevant years, you must repay the full credit on your tax return. The 25E used EV credit has tighter caps: $150,000 MFJ / $112,500 HoH / $75,000 single.
What is MAGI?
Modified Adjusted Gross Income for 30D purposes is your AGI plus excluded foreign earned income, US territory income, and exclusions for income from Puerto Rico. For most US filers, MAGI equals AGI exactly.
Prior-Year Flexibility
You qualify if either prior tax year OR delivery year MAGI is under the cap. Example: 2025 MAGI was $140,000 (single, under cap). 2026 MAGI is $180,000 (over cap). You can use 2025 MAGI to qualify for 2026 delivery 30D credit.
Repayment Rules
If you transferred the credit at point of sale and later exceed the cap in both relevant years, you owe the full credit back on your tax return. The repayment is treated as additional tax owed, not as a refund clawback.
Filing Status Considerations
Married filing separately uses the single threshold ($150,000) — meaningful for high-income couples in community-property states. Head of household ($225,000) is between single and MFJ.
Frequently asked questions
What if I am right at the cap? +
Does my spouse income count? +
Can I gift my credit to a higher-income relative? +
Related
- 30D: 30D New EV Credit Up to $7,500
- Electric Vehicles rebates $7,500 (new) or $4,000 (used) at point of sale
- HEEHRA Eligibility 2026: Income Limits, AMI Calculation, State Rollout Eligibility
- Can Renters Claim Energy Credits? (2026 Rules) Eligibility
- Low-Income Energy Rebates 2026: HEEHRA, Weatherization, LIHEAP Eligibility