EV Tax Incentives

Here's a simplified explanation of the federal tax credit for electric vehicles:

The federal government offers a tax credit of up to $7,500 when you buy an electric vehicle. But there's a catch - you don't automatically get the full $7,500.

The amount you actually get depends on how much you owe in federal income tax for the year. For example:

- If you owe $3,500 in federal tax, your credit will be $3,500. 

- If you owe $10,000 in federal tax, then you qualify for the maximum $7,500 credit.

- If you don't owe any federal tax, you don't get the credit.

The unused portion of the $7,500 does not carry over or get refunded. 

So the bottom line is - the EV tax credit reduces your federal tax bill by up to $7,500. Make sure to check your total owed federal tax for the year to know the actual amount you'll receive. It's not a guaranteed $7,500 off for everyone who buys an EV.

www.energysage.com electric-vehicles costs-and-benefits-evs ev-tax-credits

EIA.gov Data


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