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The electric vehicle tax credit begins to phase out for vehicles at the beginning of the 1st calendar quarter after the manufacturer has sold 200 000 eligible plug in electric vehicles plug in hybrids and ev s in the us as counted from january 1 2010.
Vw electric car tax credit. The electric vehicle tax credit phaseout schedule. This credit is meant to help offset the higher cost of fully electric vehicles and. Federal ev tax credit phase out tracker by automaker. An electric vehicle tax credit is an incentive given by the u s.
Mass produced full electric vehicles sold in the us qualify for the entire 7 500 tax credit. However tesla and general motors already exceeded the sales volume cap of the federal program so you will not be able to get the entire federal credit. The credit amount will vary based on the capacity of the battery used to power the vehicle. Popular electric vehicles like the chevy bolt and spark have already reached thresholds that have cut their tax credits and tesla s have completely expired.
The federal electric vehicle tax credit program will not last forever. Huge flaws in federal ev tax credit will hurt us automakers beginning in 2020. Government to consumers who buy electric cars. The credit also won t be available for general motors vehicles bought after march 31 2020 according to the irs.
An automaker is allowed to sell 200 000 plug in vehicles before the federal tax credit available to its customers begins to phase out. Federal tax credits for new all electric and plug in hybrid vehicles federal tax credit up to 7 500. 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. Additional articles and resources on the tax credits.
As mentioned earlier tesla and general motors have already reached the cap and the program no longer supports sales of their vehicles. Elimination of federal tax credits likely to kill u s. As for plug in hybrids most qualify for a federal tax credit between 3 500 and 6 300.
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