How to Qualify for EV Tax Credits
Electric vehicles (EVs) offer a world of benefits, from reduced emissions to lower fuel costs, and thanks to the EV tax credit, owning one is even more affordable. Here at Andy Mohr Ford, serving future EV owners from Indianapolis, Plainfield, and Avon, IN, we’re excited to help you navigate this exciting opportunity. Whether you're eyeing a new or used EV or Plug-In Hybrid (PHEV), understanding how to qualify for the EV tax credit can significantly impact your buying options.
This credit makes it easier for buyers to choose a sustainable vehicle and provides savings on a wide selection of EVs available at our dealership.
What is the EV Tax Credit?
The EV tax credit is a federal incentive designed to encourage the adoption of electric vehicles by reducing the overall selling price for consumers. Buyers can receive a credit on the federal taxes they may owe when buying an eligible EV, lowering the overall taxes due for the year they purchased the vehicle. You may also be able to apply the tax credit to the vehicle at the time of purchase, lowering the overall cost.
The credit amount varies based on the car’s battery size and other specifications. The goal is to reduce the environmental impact of gas-powered vehicles by making sustainable alternatives more attractive and financially attainable. As more drivers switch to EVs, this credit supports the growth of cleaner roads and a more sustainable future.
Can Anyone Claim an EV Tax Credit?
Specific requirements must be met to receive the federal tax credit. Generally, new vehicles with a battery capacity of at least 7 kWh and used EVs that meet similar criteria are eligible. New EVs or PHEVs must also undergo final assembly in North America, leaving some competitors ineligible for the credit. Income limits may affect eligibility, and the car must be purchased new from a certified dealer (like Andy Mohr Ford) to be eligible for the maximum credit.
Leases may qualify for the credit but in a different way than if you were buying. The tax credit often goes to the dealership, but an equivalent discount still applies to the lease. Understanding these criteria can help ensure you’re taking full advantage of the available benefits when buying your EV.
What Cars Qualify for EV Tax Credit?
The qualifications for the EV tax credit depend on whether the vehicle is new or used. Here's a quick breakdown:
New Cars:
- Must have a battery capacity of at least 7 kWh.
- It must be purchased from a certified dealer.
- Qualifying models include:
- Ford Mustang Mach-E
- Ford F-150 Lightning
Used Cars:
- Must be at least two years old.
- The credit applies to vehicles sold by dealers and not private sellers.
- It must have a battery capacity that meets federal standards.
These guidelines help ensure that the credit is used on efficient and sustainable vehicles, both new and used.
Test Drive an EV
If you're interested in learning more about how to qualify for EV tax credits, we invite you to visit us at Andy Mohr Ford. Our knowledgeable team can help you explore your options, review your eligibility, and find the perfect EV to match your lifestyle in Indianapolis, Plainfield, or Avon, Indiana.
Contact us today to schedule a test drive and see the benefits of driving an EV firsthand. Let’s get you on the road to a cleaner, more efficient future.
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