Federal Tax Credit For Electric Cars List

The qualified plug in electric drive motor vehicle tax credit is the main federal incentive program for electric cars available in the united states.

Federal tax credit for electric cars list.

The primary federal tax credit you should be looking at is the qualified plug in electric drive motor vehicle tax credit. The exceptions are tesla and general motors whose tax credits have been phased out. Each manufacturer has a separate tax credit. 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. Beginning on january 1 2019. 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. 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.

You may be eligible for a credit under section 30d a if you purchased a car or truck with at least four wheels and a gross vehicle weight of less than 14 000 pounds that draws energy from a battery with at least 4 kilowatt hours and that may be recharged from an external source. The federal tax credit was put in place to encourage people to buy more energy efficient vehicles. Once they sell 200 000. It s worth 7 500 in tax deductions.

The credit amount will vary based on the capacity of the battery used to power the vehicle. Take note that this tax credit will phase out. Once an automaker sells more than 200 000 evs the tax credit begins to be reduced until it is phased out altogether. Internal revenue code section 30d provides a credit for qualified plug in electric drive motor vehicles including passenger vehicles and light trucks.

There is a federal tax credit available for most electric cars in 2020 for up to 7 500. The thing is the tax credit only applies to eligible models for a limited time. Federal tax credits for new all electric and plug in hybrid vehicles federal tax credit up to 7 500. Nearly every type of electric car qualifies for this tax credit.

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. Federal incentives for electric vehicles.