The current tax credits for leased electric vehicles (EVs) involve a few key points:
- Tax Credit Ownership: The federal tax credit for EVs, up to $7,500, goes to the lessor (typically the automaker’s finance division), not the lessee. This means the lessee does not directly receive the tax credit; instead, they might benefit from a reduced lease price if the lessor chooses to pass on the savings.
- Phase-Out and Loopholes: There is a legislative loophole allowing leased EVs to qualify for the full $7,500 tax credit without meeting certain requirements for battery sourcing and vehicle pricing. However, this loophole is expected to be addressed or closed in future legislation, potentially after 2025.
- Future Changes: It is likely that changes to the tax credit rules for leased EVs will occur as part of broader adjustments to clean energy incentives. Until then, consumers should monitor updates and understand that any leasing benefits derived from the tax credit could diminish as regulations evolve.
- State and Local Incentives: Even if federal tax credits change, leased EVs might continue to qualify for state or local incentives, which could offer additional savings.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-phase-out-rules-for-tax-credits-on-leased-evs/
