Since 2010, people who buy new electric vehicles (EVs) have been able to take advantage of a federal tax credit. The maximum credit of $7,500 applies to the first 200,000 qualifying units of an EV model. The credit then decreases to $3,750 and then $1,875 within the following year. You can use the tax credit only if you are the original purchaser of the car.
EVs That Qualify for Full Tax Credit
Many EV models have not yet passed the 200,000-unit mark and still qualify for the $7500 tax credit, including
- BMW i3
- Fiat 500e
- Ford Focus Electric
- Hyundai Ioniq Electric
- Kia Soul EV
- Mercedes-Benz B-Class EV
- Nissan LEAF
- Volkswagen E-Golf
EVs That Are Phasing Out the Tax Credit
Models that have passed the 200,000 qualifying unit mark and are phasing out the tax credit include
- Chevrolet Bolt
- Chevrolet Volt
- Tesla 3
- Tesla S
- Tesla X
Plug-In Electric Vehicle Tax Credit
Plug-in Electric vehicles (PHEVs) that qualify for varying tax credits according to the model include
- Subaru Crosstrek PHEV
- Kia Niro PHEV
- Kia Optima PHEV
- Mitsubishi Outlander PHEV
- Honda Clarity PHEV
EVs That Are Used Cars
Although the tax credit only applies to the original purchaser of an EV, you still may want to look at EVs that are used cars. The full $7,500 credit does knock the price down quite a for the first 200,000 units. Once the phase-out starts and the credit decreases for a model, a used EV may be a better option.
Sales of EVs are gaining momentum, but many models still qualify for the full credit. Even if your purchase does not get you the $7,500 credit, you can still benefit from the phase-out credit or find a good values in a used EV.
