Tax Credit for Electric Vehicles
As of 2010, the purchase of all-electric and plug-in hybrid vehicles (EV) may be eligible for a federal income tax credit. What does this mean exactly? We’re here to help walk you through it.
Our team at Maguire Ford has compiled this guide to help shoppers around the areas of Ithaca, Elmira, and Cortland, NY, understand how an electric vehicle tax credit works and how it might affect them. Contact us with any questions!
Understanding Tax Credit for Electric Vehicles
Before we can get to what vehicles qualify for the electric vehicle tax credit, we should first probably get a better understanding of how it all works. Simply put, based on the amount of your year-end tax bill, you may see a federal incentive for as much as $7,500 on the purchase of a qualified electric vehicle.
So, to see that $7,500, you’d need to owe that amount—or more—in yearly taxes. For example, if you only owe $5,000 in income tax for a given year, your tax credit will cap off at $5,000.
If you owe any amount below $7,500, you also won’t see a refund check for the difference. Lastly, unused portions of the credit can’t be used in the following year.
Ford’s Qualified Electric Vehicles
If you’re an EV owner—or are planning on buying one in the future—you’re probably wondering, “Which electric vehicles qualify for the federal tax credit?” Well, it all depends on the size and capacity of the vehicle’s battery. This can lead to two qualified vehicles, each with different applied credits.
In Ford’s case, the all-electric vehicles and plug-in hybrids that make up their inventory both feature qualified models. One example is the Mustang Mach-E, which just so happens to qualify for the full credit.
However, there is a cap to this tax credit for Ford electric vehicles and those of all other trusted brands.
How Tax Credit for Electric Vehicles Helps You
How does all this help you, though? On top of the standard benefits of driving electric, the tax credit for EVs offers even more. For example, the maximum credit can effectively offset what you’ll spend charging your vehicle at home.
Additionally, depending on where you call home, your state may offer incentive programs that make driving electric vehicles even sweeter.
In New York, programs like the Drive Clean Rebate, Clean Pass Program, and the Thruway Authority’s Green Pass Discount Plan can really help you feel the benefits of driving an electric vehicle.
To discover the most up-to-date info, simply ask a member of our team. We’ll be more than happy to go over the details!
Providing Financial Guidance
If you’re still trying to figure out and understand exactly how tax credit actually applies to you, or simply want to know more, we encourage you to ask the help of our finance center.
Here, our talented group of finance professionals can provide all the guidance you need. Whether you’re looking to start the car-buying or leasing process of an EV, wondering how tax credit factors into buying vs. leasing a qualified EV, or just want to know the additional benefits tax credit programs offer drivers, we’re here to help.
You’ll also find a slew of useful finance tools here on our website, such as our online financing application, payment calculator, credit score estimator, or Edmunds True Market Value® trade-in appraisal. No matter what brings you to the finance center, our team of experts is always ready to point you in the right direction or answer any questions you might have.
Claim Your Tax Credit for Electric Vehicles
If you’re near the Ithaca, Elmira, or Cortland, areas, and want to learn more about how tax credit applies to all-electric and plug-in hybrid vehicles—or which vehicles apply—come on down to Maguire Ford.
Contact or visit us today to explore our fine selection of qualified electric vehicles!
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