Federal Tax Credit For Electric Cars Used

The federal tax credit was put in place to encourage people to buy more energy efficient vehicles.

Federal tax credit for electric cars used.

Once an automaker sells more than 200 000 evs the tax credit begins to be reduced until it is phased out altogether. Most importantly there s a 7 500 federal income tax credit on most evs which is highly enticing to many shoppers. Federal ev tax credit. Federal tax credits for new all electric and plug in hybrid vehicles federal tax credit up to 7 500.

When you buy a used electric vehicle you unfortunately miss out on some nice tax benefits of buying new. First a tax credit is different from a tax deduction. The thing is the tax credit only applies to eligible models for a limited time. 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.

A tax credit reduces the total amount of income tax an individual owes the federal government. 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. For example if you owe 8 000 in federal income tax a 5 000. The exceptions are tesla and general motors whose tax credits have been phased out.

There is a federal tax credit available for most electric cars in 2020 for up to 7 500. Looking for a used electric car. Amount may depend on your income.