Since the high cost of new vehicle technology is expected to decrease as the economies of scale are improved with increases in sales, the government is beginning to phase out the electric vehicle tax credits. The taxpayer must place the vehicle in service during or after the 2010 calendar year.The vehicle has to be used mainly in the U.S.Gross Vehicle Weight Rating (GVWR) must not be greater than 14,000 pounds.The vehicle must be considered a motor vehicle for the purposes of Title II of the Clean Air Act.For electric vehicles to be certified for the tax credit through the manufacturer, each vehicle needs to meet these requirements: What Are the Qualifications for the Electric Vehicle Tax Credit?Īccording to the United States Department of Energy, several key factors help determine what qualifies electric cars for the electric vehicle tax credit. For instance, the Toyota Prius Prime is one such plug-in hybrid hatchback that only qualifies up to a $4502 federal electric vehicle tax credit. However, this isn't mandatory for carmakers.į explains that depending on the size of an electric car's battery, some models can fall below $7500 for the maximum tax credit. Generally, manufacturers tend to factor tax credits into the costs of leases to help lower monthly payments. So, if you buy an eligible electric vehicle, like a Nissan Leaf, and you owe $4500 in income tax for a certain year, the tax credit will only be for that amount.Īccording to Edmunds, if you're only leasing a vehicle, the tax credit goes to the car manufacturer that you are leasing from, not to you. Typically, the federal incentive for the electric vehicle tax credit is a flat $7500 credit, however, this amount comes with a stipulation: the tax credit is only worth $7500 to someone whose tax bill is $7500 or greater at the end of the fiscal year. You might hear that a tax credit is only worth up to a specific amount. What You Need to Know About Electric Vehicle Tax Credits Here's everything you need to know about the electric vehicle tax credit. Additionally, there are still pre-owned Volts on the market, so if you're looking for federal tax credits for electric vehicles, you may be surprised that the Volt EV still has some time to qualify. The Chevy Volt tax credit is still applicable until the end of March, even though the Chevy Volt EV has been discontinued for 2020.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |