Drive Electric and Save Big with Federal Tax Credits!

[Ashish Acharya]

Switching to an electric vehicle (EV) or plug-in hybrid (PHEV) has never been more rewarding. Thanks to the Inflation Reduction Act of 2022, there are substantial federal tax credits available to help you save while contributing to a greener planet.

Here’s how these tax credits can benefit you:

1. Clean Vehicle Credit
For new EVs, you can claim up to $7,500 at the point of sale. Income limits apply:

• $300,000 for joint filers
• $225,000 for heads of household
• $150,000 for single filers

2. Previously Owned EV Credit
Buying a used EV? You can receive up to $4,000 in credits. However, the vehicle must cost $25,000 or less, and income caps are stricter:

• $150,000 for joint filers
• $112,500 for heads of household
• $75,000 for single filers

3. Business Benefits
If you’re using an EV for business, the Commercial Clean Vehicle Credit offers up to $7,500 with no income, price, or sourcing restrictions.

Why Leasing is a Smart Option
Leasing simplifies the process. The dealer claims the $7,500 credit and passes the savings to you through reduced lease payments or rebates. It’s no surprise that nearly two-thirds of EVs are leased today!

Whether you’re buying or leasing, understanding these credits is key to maximizing your savings.