The Federal Plug-in Electric Drive Vehicle Tax Credit can significantly reduce the cost of purchasing a new electric vehicle. The Federal tax credit can be as much as $7,500! Tax credit amounts vary based on the purchaser's tax liability and the specific vehicle. The Federal EV Tax Credit is in addition to the discounts offered through the Zoo-m Go Electric Program. These incentives are set to expire, so the time to go electric is now!
Federal Tax Credits:
Tax Credit Amount:
Purchase - Up to $7,500, based on the kilowatt-hour capacity of the battery
Lease - Varies. Only the original purchaser of the vehicle is eligible for the tax credit, so most leasing companies (dealerships) will claim the credit and pass the savings on to the leasee via lower monthly lease payments.
Details: The Federal tax credit is available for the purchase or lease of new qualifying electric vehicles. The amount of the credit is based on the battery capacity of the car, with a cap of $7,500. The battery capacity of the car must be at least 5 kilowatt-hours, for which you receive a credit of $2,500. An additional $417 is added to the credit for each additional kilowatt-hour of battery capacity up to the $7,500 cap.
Expires: Set to expire when a given manufacturer has sold 200,000 qualifying electric vehicles in the U.S. (no manufacturer has reached this cap yet).
More Information: U.S. IRS Plug-in Electric Drive Federal Tax Credit webpage
*Consult with a tax attorney regarding your eligibility for the aforementioned incentives. U Drive Electric or Drive Electric Northern Utah make no guarantees about the availability of incentives or participant ability to take advantage of the incentives.