The incremental cost of the vehicle is the amount of the purchase price for the vehicle that is over the price of a comparable vehicle that is powered by a gas or diesel engine and is similar in size and use.
For 2025, the IRS will accept the use of $7,500 as the incremental cost of all street vehicles (other than compact car plug-in hybrid electric vehicles (PHEVs)) with a gross weight less than 14,000 pounds. For PHEVs and vehicles over 14,000 pounds see the
Form 8936 Instructions for more information.