Summary
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- List of fully electric vehicles eligible for the $7,500 US ZEV tax credit provided by the US DOE and EPA
- Concern about Republicans repealing the ZEV tax credit, as indicated by Trump’s promises
- Not all electric vehicles on the market qualify for the EV tax credit
- Leasing electric cars can also allow for the $7,500 tax credit benefit, but confirm with the dealer or EV company
Article
The U.S. Department of Energy and Environmental Protection Agency provide a list of fully electric vehicles that are eligible for the $7,500 ZEV tax credit, including models from automakers such as Cadillac, Chevrolet, Ford, Honda, Jeep, Kia, and Tesla. There is concern that Republicans may repeal the tax credit soon, but buyers can take advantage of it now by purchasing qualifying electric vehicles. Starting in 2024, Clean Vehicle Tax Credits must be initiated and approved at the time of sale, according to new IRS regulations.
However, there are many electric vehicle models on the market that do not qualify for the EV tax credit, such as those from Audi, BMW, Cadillac, Chevy, Ford, Genesis, GMC, Honda, Hyundai, Jaguar, Kia, Lexus, Lucid, Mazda, Mercedes, MINI, Nissan, Polestar, Porsche, Rivian, Subaru, Toyota, Vinfast, Volvo, and Volkswagen. Despite this, customers can lease these electric cars and have the $7,500 tax credit applied to their lease. The tax credit is typically given to the leasing company, so buyers should make sure it is being used to reduce the cost of their lease.
While there is uncertainty about the future of the ZEV tax credit, purchasing or leasing an electric vehicle now is advantageous for those wanting to take advantage of the tax credit. Changes to the credit could happen quickly, so it’s recommended to act promptly if interested in getting an electric car and benefiting from the tax credit. It was previously hinted that Republicans in Congress and Donald Trump may eliminate the tax credit, but recent indications suggest that the credit may continue, particularly given the close relationship between Elon Musk and Trump.
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