Changes that took effect July 1, 2023:
The following changes to the innovative motor vehicle credit took effect on July 1, 2023. These changes do not apply to the innovative truck credit.
- The innovative motor vehicle credits allowed for the purchase or lease of qualifying motor vehicles on or after July 1, 2023, increased to $5,000.
- No innovative motor vehicle credit is allowed for any motor vehicle purchased or leased after June 30, 2023, that has a manufacturer’s suggested retail price (MSRP) greater than $80,000.
The following table reflects the innovative motor vehicle and innovative truck credits allowed for the purchase or lease of qualifying vehicles during tax year 2023 (including any tax year that is a fiscal year beginning during 2023).
| Qualifying Vehicle Type | Credit for Purchase | Credit for Lease |
|---|---|---|
| Qualifying vehicles with GVWR of 8,500 pounds or less purchased or leased prior to July 1, 2023 | $2,000 | $1,500 |
| Qualifying vehicles with GVWR of 8,500 pounds or less purchased or leased on or after July 1, 2023 | $5,000 | $5,000 |
| Light-duty passenger motor vehicles with GVWR greater than 8,500 pounds but not more than 10,000 pounds | $2,000 | $1,500 |
| Light-duty electric trucks with GVWR greater than 8,500 pounds but not more than 10,000 pounds | $2,800 | $1,750 |
| Medium-duty electric trucks with GVWR greater than 10,000 pounds but not more than 26,000 pounds | $4,000 | $2,500 |
| Heavy-duty trucks with GVWR greater than 26,000 pounds | $8,000 | $5,000 |
Electric trucks purchased and leased for personal use, that have a GVWR greater than 8,500 pounds but not more than 10,000 pounds, are generally classified as light-duty passenger motor vehicles for the purpose of the credit.