The federal tax incentive is up to $7,500. This is the maximum available amount, and will only be paid to someone whose tax bill is $7,500 or more. If you owe less than that, you will receive a smaller tax credit, equivalent to the amount you owe.
The amount you are eligible for is also based on your vehicle’s battery size. Smaller EVs receive smaller credits.
explains, if you are leasing an EV, the credit goes to the owner of the asset, typically the manufacturer. Some lessors will reduce your monthly payments to factor in the credit, but it is not compulsory.
surpassed this milestone almost three years ago, with GM only a few months behind them. This is why you can’t get tax credits for those brands anymore.
While there are plenty of other electric car manufacturers who have yet to exceed 200,000, it could happen sooner than you think. EV sales are at an all time high, and experts think they will begin outpacing sales of gas powered vehicles by 2033.
, the Biden administration has submitted a proposal to extend the current EV incentives, but the legislation still has to pass through Congress.
Are there other incentives to buy an EV?
Edmunds remind readers that there are dozens of state incentives available for electric and even hybrid vehicles. Some are not financial, but drivers get other perks like free parking or carpool lane access.
California offers a $2,000 cash rebate to anyone who buys or leases an electric car, which is probably the best state incentive out there.
Which electric cars still qualify for a federal tax credit?
As explained above, the tax credits for Tesla and General Motors have been phased out due to strong sales. Nissan is expected to surpass the threshold next year, so act quickly if you are looking to buy one of those.
All other manufacturers still qualify, including Audi, BMW, Toyota and Ford. The
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