Federal Tax Credit For Electric Cars List

There is a federal tax credit available for most electric cars in 2020 for up to 7 500.

Federal tax credit for electric cars list.

Once an automaker sells more than 200 000 evs the tax credit begins to be reduced until it is phased out altogether. 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. You must have purchased it in or after 2010 and begun driving it in the year in which you claim the credit. Federal incentives for electric vehicles.

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. The thing is the tax credit only applies to eligible models for a limited time. Take note that this tax credit will phase out. 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.

The federal tax credit was put in place to encourage people to buy more energy efficient vehicles. 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 irs tax credit is for 2 500 to 7 500 per new ev electric vehicle purchased for use in the u s. 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.

The credit amount will vary based on the capacity of the battery used to power the vehicle. Once they sell 200 000. Beginning on january 1 2019. It s worth 7 500 in tax deductions.

The qualified plug in electric drive motor vehicle tax credit is the main federal incentive program for electric cars available in the united states. Each manufacturer has a separate tax credit. Nearly every type of electric car qualifies for this tax credit. The primary federal tax credit you should be looking at is the qualified plug in electric drive motor vehicle tax credit.

Internal revenue code section 30d provides a credit for qualified plug in electric drive motor vehicles including passenger vehicles and light trucks. The exceptions are tesla and general motors whose tax credits have been phased out.