The electric car tax credit is a credit designed to offset the higher costs of electric cars. There are only a limited number of them given to manufacturers, and these tax credits have yet to expire, so prospective electric car owners can still take advantage of them. Remember that leasing an electric car will not provide the tax credit as the leasing company still technically owns the car. However, many companies renting out these cars will lower the monthly costs as they are aware that there are no guarantees for how long their vehicles will last on one charge.
The only people who qualify for electric car tax credits are the owners of electric vehicles. It is not available to resellers of electric cars. You may not claim the credit if you plan on putting a foreign license plate on it because you must be primarily using it in the United States. You can only claim a credit on one electric car.
The electric vehicle tax credit is an incentive to encourage the production of electric cars and other alternative fuel vehicles by offsetting some of their higher costs. However, it remains to be seen whether these credits will continue after 2020 when they are scheduled to expire unless Congress votes them into law again or extends them further. This would help keep down prices for electric cars until more reasonably priced alternatives become available in the market. The idea here is that over time technology used to produce electric cars will become more widely available and cheaper so even without government assistance people might still opt for electric options rather than gas guzzlers if they want a new car.
These tax credits are set to expire, so prospective electric car owners can still take advantage of them. Remember that leasing an electric car will not provide the tax credit as the leasing company still technically owns the car, but many companies renting out these cars lower monthly costs because they are aware there is no guarantee how long their vehicles last on one charge.
The manufacturer must be entitled to the tax credit. Furthermore, the battery must have a capacity of at least 4 kWh and may recharge from an external source. The IRS has the authority to refuse a tax credit application for an electric automobile. Many states and municipalities offer tax exemption status for electric vehicles used in business.
Last but not least, electric car tax credit may not be passed on to a new vehicle owner. This should be kept in mind if you plan to purchase an electric vehicle for a family member. The tax credit is only available to the first registered owner, so you can’t claim it by purchasing an electric car from a reseller.