Incentives to Buy an Electric Car
Use Incentives to Buy an Electric Car
Hybrid and all-electric cars are gaining in popularity fast as consumers realize advantages such as reduced fuel costs, minimal maintenance and exhilarating acceleration. Plus, manufacturers are producing vehicles with a greater range between charges just as towns and cities everywhere are installing more charging stations for your convenience. On top of that, when you buy an all-electric car, you can benefit from a number of rebates and even federal tax credits. Sound good? Let us break it down for you.
Rebates, Discounts, and a Federal Tax Credit
A federal tax credit is available to owners of new plug-in electric vehicles in the United States. The U.S. Department of Energy states that you can get a tax credit of up to $7,500 for each electric car you purchase. The credit will last until each participating auto manufacturer sells 200,000 EVs in the United States. After that, the credit will begin to phase out. General Motors’ EVs tax credit has dropped out completely as has Tesla’s.
If an electric car or SUV is in your future, you can look up the tax credit you can receive by first looking up the make and model and the car’s battery capacity. The credit also varies depending on whether the car is all-electric or a hybrid gas and electric vehicle. For instance, a new Toyota Prius hybrid can get you a $4,502 tax credit while a Kia Niro EV all-electric car will get you the full $7,500 credit.
How do you get these credits? When you file your tax return after buying an electric car, you must include an IRS Form 8936. If you have trouble completing the form, ask your tax preparer. Also ask about amending your tax return if you purchased an EV in the past three years and didn’t claim that credit. Note that the credit is for purchasing new cars only and not available if you lease an electric car.
But wait, there’s more! Many states and cities now offer a variety of incentives and credits if you go electric, including rebates and vehicle registration discounts. For instance, in Ashland, Oregon, Ashland Electric offers a $1,500 rebate for the registration of a new or used electric vehicle. In addition, the Oregon Department of Environmental Quality’s Oregon Clean Vehicle and Charge Ahead Rebate programs can save Oregonians up to $5,000 on the purchase or lease of a qualifying electric vehicle.
Visit the GreenCars EV Incentive Calculator for state and federal electric vehicle incentives and to check out a list of eligible model vehicles. The calculator also tells you how to find out if you qualify for increased rebate amounts. Did you know that applicants with low to moderate household incomes (less than or equal to 300 percent of the federal poverty level) are eligible for increased rebate amounts?
When you stack up all the rebates and incentives for going electric, it sure makes electric cars an attractive and cost-effective way to roll into a more environmentally friendly tomorrow.