high Electric cars continue to improve, but they’re still relatively rare so the price tag remains. It will likely remain so until there are more manufacturers and a higher level of demand. That’s why the Federal government is continuing to provide tax credits to buyers of electric vehicles.
There are also a range of state programs you should look into.
Federal Tax Credits on Electric Cars
The electric car tax credit you should be looking at is the Qualified Plug-In Electric Drive Motor Vehicle Tax Credit. Nearly every type of electric car qualifies for this tax credit. It’s worth $7,500 in tax deductions.
Take note that this tax credit will phase out. Each manufacturer has a separate tax credit. Once they sell 200,000 electric cars the credit won’t be usable if you buy a car from that manufacturer.
Throughout 2019, expect most manufacturers to still have this tax credit available. Tesla is the notable exception, as they have already passed the 200,000 mark.
Nissan and Chevy are also nearing this threshold, so it’s highly recommended that you make your purchase now and take advantage of this tax credit while you still can.
State Tax Credits for Purchases of Electric Cars
There are a range of state and local credits also available for electric cars. These apply not only to electric cars but also electric car chargers.