When considering the tax credit for leased electric vehicles (EVs), there is an important distinction regarding income limits. For purchasing an EV, the income limits apply directly to the buyer. These limits are:
- Married Filing Jointly or Qualifying Widow(er): $300,000
- Head of Household: $225,000
- All Other Taxpayers: $150,000
However, for leased EVs, the income limits do not directly apply to the lessee (the person leasing the vehicle), which can be seen as an exception. This is because the tax credit for leased EVs is considered a commercial transaction, and the leasing company receives the tax credit. The company can then pass some or all of these savings to the lessee in the form of reduced lease payments or rebates. Therefore, if you lease an EV, your eligibility for lower lease payments is not determined by your income level, but rather by whether the leasing company decides to pass on the credit savings to you.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-exceptions-to-the-income-limits-for-the-lease-tax-credit/
