If you buy an electric vehicle by March, you'll have a better chance of getting the maximum $7,500 tax credit
1. Tax Credit- The federal government offers a tax credit of up to $7,500 when you purchase an electric vehicle by March.
2. Benefits- This tax credit can help make electric vehicles cost-competitive with traditional gas-powered cars.
3. Savings- Depending on your tax rate, the credit could save you thousands of dollars on the purchase price of your car.
4. Timing Matters- Be sure to buy before March in order to maximize your savings and take advantage of this great benefit!
5. Tax Forms- When filing taxes for the year you purchased the vehicle, fill out Form 8936 and attach it to Form 1040 in order to claim the credit.
6. Other Requirements- The car must have four or more wheels and be used primarily for transportation on public roads in order to qualify for the tax credit .
7 Qualified Vehicles- Many popular brands now offer qualified electric vehicles including Chevrolet, Ford, BMW, Nissan and Hyundai .
8 Battery Capacity- In addition, there are size requirements; an EV must have at least five kilowatt hours (kWh) battery capacity
9 Plug-in Hybrids- The same applies for plug-in hybrids; they must have at least 4 kWh battery capacity .
10 Leasing Options– If you choose to lease an electric vehicle rather than buy one outright, some states may offer additional incentives or discounts that reduce your costs even further .