What is the tax credit for Honda Clarity 2018?
The federal tax credit for a 2018 Honda Clarity depends on the variant you bought: up to $7,500 for plug‑in hybrids and electric versions, up to $8,000 for the hydrogen fuel cell version. The credit is nonrefundable and tied to your federal tax liability, and additional incentives may exist from state or local programs.
Federal tax credit by Clarity variant
Because the 2018 Honda Clarity lineup included multiple drivetrain options, each variant carried a different federal incentive. The following breakdown covers the commonly available configurations from that year.
- Clarity Plug-in Hybrid (PHEV): Eligible for up to $7,500 in federal tax credit, subject to the 200,000-vehicle cap per manufacturer and your tax liability.
- Clarity Fuel Cell (FCEV): Eligible for up to $8,000 in federal tax credit, subject to the same cap and tax liability rules.
- Clarity Electric (BEV): Eligible for up to $7,500 in federal tax credit where available; availability varied by market and dealership in 2018.
Note: The federal credit is applied to the purchaser’s federal tax bill for the year of purchase and is nonrefundable. If your tax liability for the year is less than the credit amount, you can only claim up to what you owe in taxes.
How to claim the credit
To claim the federal credit, buyers file IRS Form 8936 with their federal tax return. The credit is awarded to the individual purchaser and depends on the vehicle meeting eligibility criteria, the manufacturer’s total qualifying sales, and the buyer’s tax situation.
- Confirm the vehicle purchased is a qualifying, new Honda Clarity model and that it is among the eligible drivetrain variants.
- Verify that Honda has not exceeded the 200,000 qualifying vehicles threshold for the model year (the cap affects the credit amount for all vehicles from the manufacturer).
- Secure documentation from the dealer confirming the vehicle’s eligibility and battery/fuel specifications.
- Prepare IRS Form 8936 and attach it to your federal tax return for the purchase year.
- Understand that the credit reduces your tax liability and is nonrefundable; plan accordingly if you rely on it to offset your taxes.
- Check for additional state or local incentives that may apply to Clarity purchases in your area.
Conclusion: When you buy a 2018 Honda Clarity, the federal credit can significantly offset the purchase price, provided you meet all federal requirements and there is no dealer or manufacturer cap impact on your specific vehicle.
Summary
In 2018, the Honda Clarity offered federal tax incentives that varied by variant: up to $7,500 for plug‑in hybrids and BEVs, and up to $8,000 for hydrogen fuel cell models, with the caveat that the credit is nonrefundable and subject to manufacturer sales caps and your tax liability. Buyers should also explore state or local rebates, and claim the credit using IRS Form 8936 when filing their taxes. Always confirm current eligibility as programs and caps can change over time.
Does Honda Clarity qualify for tax credits?
All purchasers of a new Clarity Plug-In Hybrid are eligible for up to a $7,500 tax credit through federal tax credit programs.
Which EVs qualify for the $7500 tax credit?
Which EVs and PHEVs Are Eligible for a Federal Tax Credit?
| Model Year/Vehicle | Credit Available | Retail Price Cap |
|---|---|---|
| 2024-25 Chrysler Pacifica PHEV | $7,500 | $80,000 |
| 2023-25 Ford F-150 Lightning EV | $7,500 | $80,000 |
| 2026 Genesis Electrified GV70 EV | $7,500 | $80,000 |
| 2026 GMC Sierra EV | $7,500 | $80,000 |
What is the resale value of the 2018 Honda Clarity?
The value of a used 2018 Honda Clarity ranges from $9,242 to $23,624, based on vehicle condition, mileage, and options. Get a free appraisal here.
Which Hondas qualify for tax credits?
Honda announced that most all-new 2024 Honda Prologue models, the first all-electric Honda SUV, will qualify for the U.S. $7,500 EV tax credit. The federal tax credit applies to the purchase of all 2024 Prologues built after Feb. 26, 2024.
