Used EV Tax Credit In California
California residents who purchase a qualifying used electric vehicle in 2025 may be eligible for the federal Previously Owned Clean Vehicle Credit of up to $4,000, equal to 30% of the vehicle's sale price. The vehicle must be at least two model years old, purchased from a licensed dealer, and priced at $25,000 or less to qualify.
Income limits for the used EV credit are lower than those for new vehicles, with thresholds of $75,000 for single filers, $112,500 for heads of household, and $150,000 for joint filers based on modified adjusted gross income. California does not have a dedicated state income tax credit for used EV purchases, but the state's Clean Vehicle Assistance Program offers grants for lower-income buyers that may apply to used vehicles.
California buyers claiming the used EV credit need IRS Form 8936 and a dealer-provided report confirming the vehicle's VIN, sale price, and eligibility. The point-of-sale transfer option is available for the used credit as well, allowing qualifying buyers to receive the benefit as an immediate price reduction at participating California dealerships.