The Federal Plug-in Electric Drive Vehicle Tax Credit can reduce the cost of purchasing a new electric vehicle by up to $7,500! Tax credit amounts vary based on the purchaser’s tax liability and the specific vehicle. The Federal EV Tax Credit begins to expire for a given manufacturer after they sell 200,000 cars, so the time to go electric is now!
Federal Tax Credits:
Tax Credit Amount:
Purchase – Up to $7,500, based on the kilowatt-hour capacity of the battery
Lease – Varies. Only the original purchaser of the vehicle is eligible for the tax credit, so most leasing companies (dealerships) will claim the credit and pass the savings on via lower monthly lease payments.
Details: The Federal tax credit is available for the purchase or lease of new qualifying electric vehicles. The amount of the credit is based on the battery capacity of the car, with a cap of $7,500. The battery capacity of the car must be at least 5 kilowatt-hours (kWh), for which you receive a credit of $2,500. An additional $417 is added to the credit for each additional kilowatt-hour of battery capacity up to the $7,500 cap.
Expires: Set to expire when a given manufacturer has sold 200,000 qualifying electric vehicles in the U.S. As of January 2020, only Tesla and General Motors have sold more than 200,000 qualifying vehicles.
More Information: U.S. IRS Plug-in Electric Drive Federal Tax Credit
Rocky Mountain Power EV Incentives:
Rocky Mountain Power offers incentives to install EV charging stations at commercial or multi-family buildings and a special time of use (TOU) rate for EV owners. Learn more at Rocky Mountain Power’s website here.