Federal Tax Credit For Electric Cars Used

The exceptions are tesla and general motors whose tax credits have been phased out.

Federal tax credit for electric cars used. The federal tax credit was put in place to encourage people to buy more energy efficient vehicles. Carfax used car listings come with a free carfax report. There is a federal tax credit available for most electric cars in 2020 for up to 7 500. It s widely known that car shoppers who choose a new electric vehicle can take advantage of a range of tax incentives.

A tax credit reduces the total amount of income tax an individual owes the federal government. For example if you owe 8 000 in federal income tax a 5 000. The credit amount will vary based on the capacity of the battery used to power the vehicle. Federal ev tax credit.

Amount may depend on your income. The federal electric vehicle tax credit program provides a tax credit as high as 7 500 depending on the vehicle you choose and your individual tax circumstances. Looking for a used electric car. Most importantly there s a 7 500 federal income tax credit on most evs which is highly enticing to many shoppers.

All electric and plug in hybrid cars purchased new in or after 2010 may be eligible for a federal income tax credit of up to 7 500. First a tax credit is different from a tax deduction. When you buy a used electric vehicle you unfortunately miss out on some nice tax benefits of buying new.