Federal Tax Credit For Electric Cars List

Federal tax credits for new all electric and plug in hybrid vehicles federal tax credit up to 7 500.

Federal tax credit for electric cars list.

Once they sell 200 000. The irs tax credit is for 2 500 to 7 500 per new ev electric vehicle purchased for use in the u s. Once an automaker sells more than 200 000 evs the tax credit begins to be reduced until it is phased out altogether. Beginning on january 1 2019.

The qualified plug in electric drive motor vehicle tax credit is the main federal incentive program for electric cars available in the united states. Qualified plug in electric drive motor vehicles irc 30d internal revenue code section 30d provides a credit for qualified plug in electric drive motor vehicles including passenger vehicles and light trucks. Under this program the purchase of a new electric vehicle is eligibe for a tax credit worth 7 500 as long as it meets the following criteria. All electric and plug in hybrid cars purchased new in or after 2010 may be eligible for a federal income tax credit of up to 7 500.

Federal incentives for electric vehicles. The primary federal tax credit you should be looking at is the qualified plug in electric drive motor vehicle tax credit. The credit will begin to phase out when at least 200 000 qualifying vehicles manufactured by each manufacturer have been sold in the u s. Internal revenue code section 30d provides a credit for qualified plug in electric drive motor vehicles including passenger vehicles and light trucks.

You must have purchased it in or after 2010 and begun driving it in the year in which you claim the credit. For vehicles acquired after 12 31 2009 the credit is equal to 2 500 plus for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity 417. The thing is the tax credit only applies to eligible models for a limited time. It s worth 7 500 in tax deductions.

The federal tax credit was put in place to encourage people to buy more energy efficient vehicles. There is a federal tax credit available for most electric cars in 2020 for up to 7 500. For vehicles acquired after december 31 2009 the credit is equal to 2 500 plus for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity 417 plus an additional 417 for each kilowatt hour of. The exceptions are tesla and general motors whose tax credits have been phased out.

Take note that this tax credit will phase out. The credit amount will vary based on the capacity of the battery used to power the vehicle.