What to Know About Electric Vehicle Tax Credits
What to Know About Electric Vehicle Tax Credits

What to Know About Electric Vehicle Tax Credits

The federal government implemented a program from the beginning of 2010. The program was meant to give EV purchasers a tax credit of over $7500. The main reason for establishing the program was to encourage individuals To purchase more fuel-efficient Vehicles by reducing EV prices to be close to that of internal combustion Vehicles. It was discovered that some states engaged with an additional tax credit.

Although some of the EVs automakers have already removed themselves from the federal program, this decreased tax credit, which is in line with the company’s total EV sales from 2010 on many qualified Vehicles, we have gathered a quick guide that will assist you in knowing what an electric vehicle tax credit is.

Things To Know About Electric Vehicles Tax Credit

Electric Vehicles Tax credit is a tax credit that is not refundable due to using a battery propulsion system to purchase a vehicle. The battery propulsion system can extract power through an external power source. The tax credits are usually available for plug-in hybrid and pure electric vehicles.

So many factors are associated with the credit earned, and they use it to minimize taxes you owed in a certain year. For example, if you buy an electric vehicle for a $7500 tax credit and have a total federal tax for that year of $8500, you will owe $1000 to the government. The Battery size of the car determines the credit amount or incentive tax that qualifies a car.

Which Among The Vehicles Has The Qualifications For An Electric Vehicles Tax Credit?

The plug-in hybrid vehicles and all battery electric are among the vehicle which qualifies for tax incentives. At the same time, regular hybrid vehicles do not qualify. The main requirements that make a vehicle qualify for the credits are; if the vehicle has a battery that is larger than 5kWh, it can be externally recharged, among other regulations, and it has a curb weight of under 14000 pounds.

Many automakers have been removed from the program, including Tesla and General Motors; they do not qualify for tax credits. Many qualified vehicles are on the list of EPA, including the qualifying amount and the date at which the vehicles are purchased.

How Can You Receive EV Tax Credit?

To receive an electric vehicle tax credit is a very simple process; the first thing to do is buy a qualified Vehicle. Next, you must fill out an 8936 form with your tax return. An important aspect is that it is a nonrefundable tax credit. What does that mean?

It clearly shows that the credits can only be applied to the owed taxes in a given year, and if the situation occurs that you got the chance to receive more credits than the taxes owed, then you are not going to be given the difference in the form of a check. Although if you have a refundable tax credit, you will be eligible to receive the check.

As you don’t get a roll-over check, the credit can only be applied to your taxes for one tax year. Moreover, you must remember that you can not achieve the qualifications for the credits if you lease the vehicle because the manufacturer owns it, not you. The manufacturer has the right to apply for and receive the credit in such a situation. You might be able to receive indirect benefits from the credit because the price of the lease usually determines such credits.

Car Leases in NJ & NY Done Right

How does a lease work? If you have more questions, we are here to help!

The Vantage Auto Group provides reliable car leasing options in both New Jersey and New York. On our website (https://www.thevantagegroupauto.com/), you can access an entire inventory of marked down vehicles that fit your lifestyle and your budget.

We also provide a selection of luxury cars at rock-bottom prices. These typically come from unions and corporations that can offer larger discounts. Our professional staff is ready to help find a vehicle to fit your tight budget or find financing solutions that fit your poor credit score. Give us a call at (844)-307-3885 to speak with a live agent, or feel free to email us with any questions.

At The Vantage Auto Group, we save you time, money and peace of mind when it come to Buying your New Car!

No need to deal with the headaches of sitting in a dealership for hours on end and haggling with pushy sales reps.  With our robust dealer network, we’re able to get wholesale pricing and guarantee the most competitive lease or purchase price on any new vehicle. We handle all makes and models, so you can be confident that we’ll find the perfect vehicle that fits your needs.

There are many places to lease or purchase your next vehicle.  The products are the same regardless of the source. So it’s the people who make the difference. Our staff is passionate about what we do. We are all car enthusiasts and understand your excitement about finding the right vehicle at the best possible terms. Along with our enthusiasm is our commitment to be transparent about your lease / purchase and our pledge that all dealings with us be fair, and yes, even fun!

Get Started Today With Your Personalized Car Quote from Vantage Auto Group!

Good credit, Bad Credit, or looking to get an approval, CONTACT US Today!  We work directly with multiple lenders to find the lowest possible lease rate on a new car lease. Come banks will even help us offer short term lease as short as 12 months if not ready to commit to a 2 or 3 year lease. We can even help you get out of your current car with our swapalease lease transfer program. when using our swapalease program, you will no longer be responsible for your current car.

Price Reflects TIER 1 Credit Approval. Prices are for new lease vehicles only. Images are for Display purposes only. Price Excludes local taxes, acquisition fee & DMV/title. Pricing, lease term, and miles per year may vary. All Incentives are Applied For Qualified Customers including Loyalty Rebate, Conquest Rebate, VPP Rebates, College Graduation Rebates, and Regional Rebates.

No need to deal with the headaches of sitting in a dealership for hours on end and haggling with pushy sales reps.  With our robust dealer network, we’re able to get wholesale pricing and guarantee the most competitive lease or purchase price on any new vehicle. We handle all makes and models, so you can be confident that we’ll find the perfect vehicle that fits your needs.

There are many places to lease or purchase your next vehicle.  The products are the same regardless of the source. So it’s the people who make the difference. Our staff is passionate about what we do. We are all car enthusiasts and understand your excitement about finding the right vehicle at the best possible terms. Along with our enthusiasm is our commitment to be transparent about your lease / purchase and our pledge that all dealings with us be fair, and yes, even fun!

At Vantage Auto Group, we save you time, money and peace of mind! No need to deal with the headaches of sitting in a dealership for hours on end and haggling with pushy sales reps. With our robust dealer network, we’re able to get wholesale pricing and guarantee the most competitive lease or purchase price on any new vehicle.
Copyright © 2022 The Vantage Group NJ LLC. All Rights Reserved. | Site Designed By Plutus Media