EV tax credits offset the cost of purchasing all-electric or hybrid vehicles. Because of the positive environmental impact electric vehicles have on the planet, there are federal and local government incentives in place to ease the financial burden of owning one. If you’re interested in purchasing an electric vehicle, be sure to learn about electric and hybrid tax credits first.
Federal Credits
In the United States, the primary federal tax credit for electric vehicles is the Qualified Plug-in Electric Drive Motor Vehicle Tax Credit. As long as the vehicle meets the following qualifications, you can receive EV tax credits worth between $2,500 and $7,500.
- The vehicle was purchased after December 31, 2009
- The vehicle uses a traction battery (most EVs use this type of battery)
- The battery has a capacity of at least 4-kilowatt hours (kWh)
- The battery charges from an external plug-in charger
- The vehicle weighs up to 14,000 pounds
- The vehicle meets emission standards
This credit applies to both all-electric and plug-in hybrid vehicles, and the exact amount you can claim depends on your vehicle’s model.
Which Vehicles Qualify?
If you’re interested in EV tax credits for a specific vehicle you’re thinking about purchasing or if you already own an EV, you can check this list made by the U.S. Department of Energy to see the eligibility status of a specific model of EV.
If your vehicle doesn’t qualify for the Qualified Plug-in Electric Drive Motor Vehicle Tax Credit, there are other tax credits available for smaller electric vehicles. We encourage you to contact our helpful team if you need assistance finding incentives for your EV.
Credit Expiration
When an EV’s manufacturer has sold 200,000 of a model, that model is no longer eligible for these federal EV tax credits. As of January 2019, most vehicles are still eligible. While you still have time to claim your credits, it’s wise to jump on this opportunity now before the general public realizes the incredible savings that are currently available.
Local EV and Hybrid Tax Credits
Depending on where you live, you may be eligible for state, city, and utility credits too. Beyond tax credits, you may also be able to take advantage of vouchers, rebates, registration fee reductions, loans, and high-occupation vehicle lane exemptions. Be sure to check your local opportunities for EV tax credits, as they can further alleviate the cost, often dramatically.
We Can Help You Claim Your Credits
These tax opportunities aren’t just for EV vehicle buyers. There are also some exciting tax incentives for property owners to reduce the cost of buying and maintaining charging infrastructure. Whether you’re shopping for a new EV or looking to upgrade your property with EV charging stations, our experts can help you get the credits you deserve. Contact us now to learn more.
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