EV Car Purchase Instant Rebates & Credits By: BJ Killeen / Down the Road If you’re looking into purchasing an electric vehicle, you may or may not know that certain EVs come with the possibility of a federal tax credit up to $7,500. In addition, there can be state and local rebates as well, all of which are designed to entice you into purchasing an electric vehicle or a plug-in hybrid (PHEV) as your next mode of transportation. For example, in Nevada, low-income customers may qualify for an additional $2,500 rebate for the purchase of a new or even used EV. This is a great bonus, because EVs are priced higher than regular vehicles, but with a $10,000 credit/rebate, it brings it closer in line with a gas-powered vehicle. Currently, there are fewer than 30 models that qualify. Keep in mind, however, that how much of a credit you get is based on a variety of factors, such as the vehicle’s specifications, where it’s built, your taxable income, and more. This all means that you needed to have a discussion with your tax accountant or CPA to see if an EV purchase makes sense tax wise as well as fits your lifestyle. With that said, starting January 2024, that will change. The U.S. Treasury has issued a new guidance on how the $7,500 tax credit can be used. To bring more EV buyers into the fold, the Treasury Department now states that the $7,500 credit can be used as a point-of-sale rebate. What that means is you can transfer the credits to a car dealership, effectively lowering the vehicle’s purchase price right there and then. The EV buyer still would need to prove that they meet income limits to qualify for the credit, and if they don’t, they will have to repay whatever credit they received when filing their taxes. For new vehicles, the adjusted gross income limit is $300,000 for married couples, and $150,000 for individuals. To get more information on who qualifies, the credit amount, and which vehicles are included, visit: irs.gov/credits-deductions and select Clean Vehicle Credits under Credits for Individuals menu. BJ Killeen has been an automotive journalist for over 30 years. She welcomes all questions and inquiries, and can be reached at bjkdtr@gmail.com 34 November 2023
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