03.17.2020 - by Silvia Gonzalez
How can I take advantage of the federal EV tax credit?

The federal government offers a tax credit of up to $7,500 for purchasers of plug-in vehicles. Those who lease an EV cannot take the credit directly, as it goes to the financial company that owns the vehicle, but some companies pass this credit along to the lessee through lower lease payments.

Because this incentive is a tax credit and not a rebate, your credit will be deducted from your taxes at the end of the year. To claim the tax credit, use IRS Form 8936 when filing your taxes at the end of the year. Please consult with your tax advisor.

The tax credit phases out for each automaker once they have sold 200,000 qualified EVs. As of August 2019, Tesla vehicles are only eligible for 25% of the credit through December 31, 2019. GM vehicles (including Chevy Bolt) are eligible for 50% of the credit through September 30, 2019, then 25% of the credit through March 31, 2020.

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