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Tommy purchased a new clean electric vehicle in 2023. What is the amount of the Clean Vehicle Tax Credit, assuming the transaction otherwise qualifies for the maximum tax credit? (Search Chapter 2) a. $3,750 b. $4,000 c. $7,500 d. $9,000

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Since the qualifies for the maximum tax credit, the amount of Clean Vehicle Tax Credit is c. $7,500.

How the maximum tax credit is determined:

The Internal Revenue Service (IRS) allows the maximum tax credit of $7,500 once the requirements are met.

If the vehicle is placed in service between January 1 and April 17, 2023, the credit amount is up to $7,500, which is the maximum.

For vehicles placed in service from April 18, 2023, the credit amount is up to $3,750.

Thus, we can conclude that Tommy's new clean electric vehicle (EV) purchased in 2023 will get Option C in Clean Vehicle Tax Credit.

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