How to Save Money When Buying an EV with the Electric Vehicle Tax Credit
There are many different benefits to electric vehicles (EVs) that are causing more and more consumers to ditch their gas-powered cars and go electric. Many of these benefits also save consumers money through cheaper fuel (electricity), fewer maintenance costs, and a variety of incentives for consumers who purchase an EV. One of the most important incentives is the Electric Vehicle Tax Credit. Here’s what the EV Tax Credit is and how it can save you money when you go electric:
What Is the EV Tax Credit?
The EV Tax Credit is a federal tax credit given out to consumers who buy a brand new electric vehicle. The amount of the credit depends on the make and model of the car you buy, with amounts ranging up to $7,500. This tax credit can then be claimed on your taxes for the year in which you bought the vehicle.
How Does It Save Me Money?
The EV Tax Credit is like any other tax credit you may receive in that it reduces the total amount of federal income tax you owe in a given year. For example, if you owed $5,000 in federal income tax, but received a $2,000 EV Tax Credit, then you would only owe $3,000 in income tax. You would then claim the EV Tax Credit when you file your taxes for the year.
At Drive Clean Bay Area, we believe EVs are vital to a cleaner future, whether they are for driving, towing, or outdoor needs. We host regular events to keep you informed of the latest vehicles, innovations, and financial incentives, as well as offer an EV Buying and Driving Guide.
Our EV Discount Program provides limited-time savings events with discounted pricing on a variety of new battery electric and plug-in hybrid vehicles.
Sign up now to get notified when we announce this year’s EV Discount vehicles!