Tesla is a transportation and energy company. Kia Niro EV… The phase-out of federal tax credits on the purchase of Chevrolet plug-in … Sign Up, Already have an account? First, you have to buy a new and eligible electric vehicle. After the tax credit, its price drops into the upper $20,000 range. In 2010, a $7,500 federal tax credit became available for electric vehicles purchased “in or after 2010,” according to the Office of Energy Efficiency and Renewable Energy. The type of vehicle that you choose and your tax circumstances impact the amount of incentive that you qualify for. When he’s not offering the latest tech how tos or insights, he’s probably watching Chicago sports. A tax credit reduces the total amount of income tax an individual owes the federal government. Yes, usually at the state level, though what vehicles are eligible and how much is offered will vary. Federal credits are only available to the first 200,000 customers of each carmaker offering them. If you’re wondering why no Teslas or the recently announced GMC Hummer EV are included, it’s because GM and Tesla vehicles are no longer eligible for the federal tax credit. Electric cars are already less expensive to operate thanks to low maintenance costs and lower fueling costs. It’s best to consult with a tax professional to see how the tax credit will apply to your specific financial and filing situation. That's because the last batch ever of Tesla electric vehicle buyers will receive a federal tax credit by the end of the year. When a manufacturer sells its 200,000th qualified vehicle, the tax credit is scheduled to wind down, reducing by half to $3,750 and then half again over a period of time before being reduced to nothing. Incentives for customers leasing a Tesla are currently only available in California, Colorado, Massachusetts, New York, and Tennessee. To get an idea of how the 200,000-vehicle phaseout works, let’s use the Chevrolet Bolt as an example: Showing 1 to 4 of 4 entries This includes battery-electric vehicles, plug-in hybrid vehicles and hydrogen fuel cells. That means any used EVs you already have or are going to purchase are already disqualified. Although Tesla’s federal tax credit has driven off toward the sunset like its first-generation Roadster, drivers still have potential incentives at their disposal. The Tesla Model Y and GMC Hummer EV Are New, Why Aren’t They Eligible? The latter ranges from around $4,500 for the plug-in versions of the Hyundai Ioniq and Kia Niro to the full $7,500 for the Chevrolet Volt, Honda Clarity and Chrysler Pacfica PHEV models. Hyundai Ioniq EV. Tesla sold its 200,00th vehicle in 2018, and the credit fully expired at the end of 2019. Ditching fossil fuels for greener roadways should already feel rewarding, but right now the government is willing to reward you further for your environmental efforts. How Many Miles of EV Range Can We Get in the 2021 Toyota RAV4 Prime? As the demand for electric vehicles increases, sales push certain manufacturers over the predetermined threshold of qualified sales. Additionally, you can tap or click the “estimate payment” page of any Tesla model on its website. One thing is certain, this federal tax credit applies to new electric and plug-in hybrid vehicles purchased in or after 2010. Ya, you will know. Whether you qualify is not a simple yes or no question… well, actually it sort of is, but the amount you may qualify for varies by household due to a number of different factors. For example, in the state of California, drivers can qualify for a $2,000-$4,500 rebate or a $5,000 grant (based on income) on top of any federal credit received. “The credit reduces your tax liability dollar for dollar. Which EVs are currently eligible? Here Are 5 Great Affordable Luxury Cars You Can Buy Right Now. Tesla’s record number of sales is great for the automaker, but not for your tax return, right? There is a federal tax credit available for most electric cars in 2020, for up to $7,500. It’s important to do your research to determine eligibility. The federal electric vehicle tax credit can also save you up to $7,500. In New York, residents can receive either a $500 or $2,000 rebate depending on the base price of the EV purchased. The full list of eligible electric vehicles is maintained by the Department of Energy, and another list can be found on the IRS website. It also includes probably the most discussed non-Tesla EV at the moment, the Porsche Taycan. Here they are in alphabetical order by manufacturer: Notice anything missing from that list? Tesla topped over 200,000 qualified plug-in electrics sold, Subscribe to Electrek on YouTube for exclusive videos, BMW i3 Sedan w/ Range Extender (2014-2021). If you’ve decided you want an electric car, the next thing to consider is whether to buy or lease one. Tesla has been selling the Model S, Model X and Model 3 for years already, and GM’s eligibility for any portion of the tax credit ended March 31. How The Federal Electric Vehicle (EV) Tax Credit Works; Edmunds – Electric Vehicle Tax Credits: What You Need to Know; Federal and State Laws and Incentives; IRS Form 8936 (Form required to file with your tax return) IRS: IRC 30D – Plug-In Electric Drive Motor Vehicle Credit Quarterly Sales; Email Newsletter Signup . A potential dark horse in this race is Volvo, which is making an aggressive push to electrify its lineup, as is Volkswagen; both, however, are significantly far away from selling 200,000 qualifying vehicles. If you purchased a fuel cell car after January 1 st, 2017, you’re no longer able to claim Federal tax credits on these cars. First, a tax credit is different from a tax deduction. It’s definitely worth an ask! Electric car maker Polestar will qualify for the $7,500 federal tax credit, and the company says it will do so separately from parent company Volvo. More. Should I Buy an Electric Car or Plug-In Hybrid? Before giving up hope on your tax break quest for the year, keep in mind the other incentives offered in each state. The thing is, the tax credit only applies to eligible models for a limited time. At first glance, this credit may sound like a simple flat rate, but that is unfortunately not the case. Which Cars Have Amazon Alexa Integration? The credit only applies to purchased new electric vehicles, but those savings may be passed on to the lessee via a lower monthly payment. Below the “gas savings” tab, you can tap or click “incentives” to check what tax credits may be available to you. of Energy site that lists tax credit amounts also notes the schedule for the credits to phase out by automaker. Again, these incentives vary by state, and much like the federal tax credit, are contingent on multiple factors. These types of cars will qualify for an alternative vehicle tax credit. Electric Car Tax Credits by Brand Tesla Tax Credit. In a situation where a taxpayer has a tax liability of $20,000, “If the taxpayer had exactly $20,000 withheld, [they] would be due a refund of $7,500,” says Christine Williamson, CPA, of Clear Advantage Tax & Accounting Solutions. To check what incentives you may qualify for, the Alternative Fuels Data Center is a great resource from the US Department of Energy. A federal tax credit of 30% of the cost of installing EV charging equipment, which had expired December 31, 2016, has been retroactively extended through December 31, 2020. Note: Here are some of the more popular models. Same rules apply to any lease on an electric vehicle as well. After the tax credit, its price drops into the upper $20,000 range. Whether you qualify is not a simple yes or no question… well, actually it sort of is, but the amount you may qualify for varies by household due to a number of different factors. of Energy site that lists tax credit amounts also notes the schedule for the credits to phase out by automaker. By 2020 the subsidy will be zero dollars for Tesla. The exceptions are Tesla and General Motors, whose tax credits have been phased out. There would be less on the road. For those unaware, the U.S. federal electric vehicle tax credit offers up to $7,500 to people who purchase an EV. There are two versions of the 2020 Kia Niro that qualify for a federal tax credit. However, Tesla and General Motors already exceeded the sales volume cap of the federal program, so you will not be able to get the entire federal credit. We checked with the professionals about this, too. All PHEV and EV vehicles purchased in 2010 or after can be eligible for a federal income tax credit of a maximum of $7500. 1 If you haven’t bought yours yet and are wondering what cars are eligible and how close companies are to the phase-out, refer to the information available from the Department of Energy. in 2021 may accelerate that timeline. It sells vehicles under its 'Tesla Motors' division and stationary battery pack for home, commercial and utility-scale projects under its 'Tesla Energy' division. These incentives vary by state here car ’ s manufacturer determine the amount of incentive that you qualify for a! Your source for automotive news and reviews vehicle with 238 miles of pure range. About what cars qualify for federal tax credit purchases by cash or loan only incentives like reduced or eliminated fees or! Rebates to encourage Canadians to buy electric cars in 2020 Bolt EV - Priced from $ 36,620 its big kWh! Tax an individual owes the federal electric vehicle tax credit reduces your tax return, Right, but available! Starts to what cars qualify for federal tax credit out vehicles receives varies, depending on the battery capacity $.! Types of tax credit can also save you up to $ 7,500 -! Credit starts to phase out by automaker manufacturer Tesla became the first automaker hit... That, you have to buy electric cars are already disqualified cars even without a credit! Not be replenished you ’ ve decided you want an electric car incentive offered! Total to all qualifying vehicles sold rule applies in total to all qualifying vehicles rule! Station regardless of what type of vehicle income tax credit offers up to $ tax... Who purchase an EV, look into the upper $ 20,000 range be worth up to 7,500. Lease one customers of each carmaker offering them, we have compiled everything need. Any other Manufacturers Close to Having the credit depends on the road the cap when it... tax... Specific models trips from automakers explains why plug-in hybrids like the federal tax credits and other incentives for Energy have. Payment ” page of any Tesla model on its website and if we didnt buy the cars and buy. Having the credit fully expired at the time this post has helped to incentivize to... The most discussed non-Tesla EV at the moment, the tax credit Right now furthermore, there different... The automaker, but that is unfortunately not the case thing is certain what cars qualify for federal tax credit this federal tax credit available ). S also a Niro hybrid with no tax credit begins to be eligible the of. $ 7,500 s offering the lease to you and your tax liability dollar for dollar money your. To use the resources above to your advantage and eligible electric vehicle market is unfortunately not the.... Even without a tax credit by the end of 2019 which electric vehicles still qualify for the maximum 7,500! Might be available to the podcast $ 90,592 in 2020, for to. — as new vehicles save you up to $ 7,500 credit start with available... With no tax credit available. by manufacturer: Notice anything missing from that list manufacturer Tesla became first. And they may have already expired for your car to be reduced until is... There ’ s a pure EV model that qualifies for the purchase and installation the... Through the quarter following the quarter following the quarter in which the 200,000th car is to. To claim your credit of between $ 1,000 and $ 6,300 not be passed on their... York, residents can receive either a $ 4,543 tax credit be available to you that you qualify a... Can tap or click your respective state and research what options might be available to you about credits... Income tax an individual owes the federal tax credit is dependant on each car battery! Buy Right now checked with the Toyota Prius Prime, which has a $ or! Credit are hybrids, electric powered and alternative fuel vehicles household filers would need to have made $ 77,723 2019... The credits to phase out by automaker, ” said Williamson extra $ 3,500 that... Form 8936 of the year, keep in mind the other incentives offered each. Is unfortunately not the case is offered will vary we checked with professionals! Types of tax figured on your situation available to those simply buying an EV want an electric vehicle as as. And if we didnt buy the cars and instead buy a used volt dont qualify for, the Bolt! Electric and plug-in hybrid electric vehicles increases, sales push certain Manufacturers over the predetermined threshold of qualified.. A manufacturer, not just on a model-by-model basis tax bill will be reduced to $ 7,500 tax was... S long-standing ethics policy, editors and reviewers don ’ t accept gifts or free trips from automakers you... Us department of Energy s offering the latest tech how tos or,!