What is incremental cost, and will that affect the amount of the tax credit?
The incremental cost is the cost difference between the new clean vehicle and a comparable new gas-powered (ICE) vehicle. The Department of Energy conducted a study that found that all EVs would have an incremental cost of at least $7,500 for 2024. The only exception is compact plug-in hybrid electric[…]
If I am leasing an EV and at the end of my lease I purchase the vehicle from the dealer, will the used vehicle purchase tax credit apply?
IRS Guidance FS-2023-29 indicates that “original use” with regard to leases is, “where a vehicle is acquired for lease to another person, the lessor is the original user.” This means that the finance company, which actually owns the vehicle, is the original user. Since the original use would be the[…]
