Maximizing EV Tax Credits: Drive Into Savings

Jan 24

The future of transportation is electric, and federal incentives make the switch to electric vehicles (EVs) more affordable. Whether you’re buying new, used, or leasing, understanding available tax credits can help you save while contributing to a greener planet.

1. Purchase a New EV

The clean vehicle credit provides up to $7,500 for eligible new EVs:

Immediate Savings: Apply the credit at the point of sale.
Eligibility: Vehicles must meet domestic sourcing rules, and income caps apply ($150,000 for single filers, $300,000 for married filers).
Check Models: Only 24 models qualify for the full credit. You can confirm eligibility through the Department of Energy’s official list of qualifying vehicles at FuelEconomy.gov.

2. Buy a Used EV

Save up to $4,000 when purchasing a qualifying used EV:

Income Caps: Lower thresholds—$75,000 for single filers, $150,000 for married couples.
Price Limit: Vehicle purchase price must be $25,000 or less.
Vehicle Age: The EV must be at least two years old.

This credit expands access to EV ownership at a lower cost.

3. Business Use EVs

The commercial clean vehicle credit offers up to $7,500 for business-use EVs:

No Caps: Unlike personal credits, there are no income or price restrictions.
Business Benefits: Ideal for fleet purchases or commercial use.
Flexible Depreciation: The credit amount is based on the vehicle’s business-use percentage.

4. Lease an EV

Leasing can simplify the process:

Dealer Advantage: Dealers claim the $7,500 commercial credit and pass the savings to you via reduced payments or rebates.
Broad Eligibility: Leasing bypasses many restrictions, like sourcing rules.
Flexibility: Ideal for those exploring EVs without a long-term commitment.

Key Considerations

Restrictions: Understand income and price caps for personal credits.
Research Models: Only a limited number of EVs qualify for full credits.
Combine Savings: Pair federal credits with state and local incentives for maximum benefit.

Drive Into Savings Today

EV tax credits make it easier to embrace the future of transportation. Whether purchasing or leasing for personal or business use, now is the time to act. Contact us for help navigating the rules and creating a strategy to maximize your savings. Let’s make your transition to EV ownership seamless and rewarding!

Luke Weissgarber