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What Are the Used Electric Car Tax Credits. The Internal Revenue Service (IRS) defines the Clean Vehicle tax credit for used vehicles as a credit that equals 30% of the sale price up to a maximum.
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An electric vehicle (or EV) is a car that uses only electricity for propulsion. Instead of having a typical engine that relies on pistons and the combustion of a fuel source like gasoline to create energy sent through a drivetrain to move a vehicle forward, EVs used stored electricity from a large battery pack routed through electric motors.
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As a harbinger of used car prices, the U.S. new-vehicle average transaction price in January was $47,401, down 2.6% from December 2023 and down 3.5% compared to January 2023, according to Kelley.
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A new electric car costs about $2,039 more on average than a conventional gas-powered car as of January, according to a Cox Automotive study. But e-vehicles have lower costs to maintain, repair.
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