Tax Incentives for Electric Vehicles
It’s no secret that electric vehicles cost a bit more to insure. It’s important to keep in mind despite this, you will save money regularly on oil changes, gas, and maintenance that regular cars require but electric don’t. That being said, there are certain things you can do to offset the higher premiums of these environmentally friendly travel vessels. There are now many rebates at local and federal levels to incentivize the purchase of an electric or hybrid vehicle. The IRS now offers a $7,500 tax incentive for new electric vehicle purchases for personal or business use. Let’s take a look at the requirements.
Who Qualifies?
Those who purchase it for themselves or their business and not for resale
Those who use it in the United States
Married couples whose adjusted gross income does not exceed $300,000
Heads of household AGI whose income does not exceed $250,000
All others whose AGI does not exceed $150,000
Those who have the seller report the required information to you at the time of sale and to the IRS
The Vehicle Must:
Have a battery capacity of at least 7-kilowatt hours
Have a gross vehicle weight rating of less than 14,000 pounds
Be made by a qualified manufacturer
Undergo final assembly in North America
Meet critical mineral and battery component requirements
Be new
Not exceed MSRP of:
$80,000 for vans, SUVs, and trucks
$55,000 for cars
To claim the credit the buyer must fill out the proper FORM and file with their taxes and the credit amount will depend on when the vehicle went into service, regardless of the purchase date. Eventually, the insurance gap for electric vehicles and regular cars will get smaller and smaller as they become more commonplace. Trust us, they will become commonplace in the not-so-distant future. If you need help understanding how these tax credits work further may we suggest seeing a tax advisor, financial advisor, or CPA. For insurance questions give us a call and we’ll be happy to help you understand electric vehicle coverage.