Buying an electric vehicle could now come with a hefty tax credit. There are plenty of stipulations to keep in mind, however.

The Internal Revenue Service Clean Vehicle Tax Credit provides a $7,500 tax credit for qualified plug-in electric or fuel cell vehicles purchased and put into service on Jan. 1 or later. Among the manufacturers qualifying for the credit include vehicles made by Honda, Ford, General Motors, Hyundai, Kia, Nissan, Subaru, and Tesla. You can see a complete list of qualifying vehicles here.

Qualifying vehicles must be American-made and have a battery capacity of at least 7 kilowatt hours with a gross vehicle weight rating of less than 14,000 pounds. The manufacturer suggested retail price can’t exceed $80,000 for vans, sports utility vehicles and pickup trucks or $55,000 for vehicles.

Sellers are required to report their name and tax ID number to the IRS to claim the credit.

The vehicles must be purchased for personal use and not for resale. The buyer’s modified adjusted gross income cannot exceed $300,000 for married couples filing jointly, $225,000 for heads of households or $150,000 for all other filers.

The credit is nonrefundable, so you can’t get back more on the credit than you owe in taxes.

Some 2022 electric or fuel cell vehicles also qualify for tax credits. You can see those here.

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How to Claim the Credit

To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return. You will need to provide your vehicle’s VIN.