Federal Tax Credit For Electric Cars Used

The federal electric vehicle tax credit program provides a tax credit as high as 7 500 depending on the vehicle you choose and your individual tax circumstances.

Federal tax credit for electric cars used.

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 tax credits for new all electric and plug in hybrid vehicles federal tax credit up to 7 500. The federal tax credit was put in place to encourage people to buy more energy efficient vehicles. Carfax used car listings come with a free carfax report.

Looking for a used electric car. First a tax credit is different from a tax deduction. It s widely known that car shoppers who choose a new electric vehicle can take advantage of a range of tax incentives. The exceptions are tesla and general motors whose tax credits have been phased out.

For example if you owe 8 000 in federal income tax a 5 000. Amount may depend on your income. When you buy a used electric vehicle you unfortunately miss out on some nice tax benefits of buying new. The thing is the tax credit only applies to eligible models for a limited time.

There is a federal tax credit available for most electric cars in 2020 for up to 7 500. A tax credit reduces the total amount of income tax an individual owes the federal government. The credit amount will vary based on the capacity of the battery used to power the vehicle.