Yes, there are state-level incentives for leasing electric vehicles (EVs), though the availability and specifics vary by state.
Example: Colorado
Colorado offers a state tax credit for both purchasing and leasing new electric vehicles. The credit amount depends on the vehicle’s manufacturer’s suggested retail price (MSRP):
- A $3,500 tax credit for leasing or purchasing a new EV with an MSRP up to $80,000
- An additional $2,500 credit for leasing or purchasing a new EV with an MSRP up to $35,000
To qualify, the vehicle must be titled and registered in Colorado, and the lease must be for an initial term of at least two years. Some dealers in Colorado also allow the tax credit to be assigned to them so that lessees can receive the credit as a point-of-sale discount, effectively reducing the lease price upfront.
Federal Context and Leasing
At the federal level, there is also a tax credit for leased EVs, but this credit is claimed by the lessor (dealer or leasing company), not the lessee. This “EV lease tax credit loophole” means dealers can receive the full federal tax credit and may pass on savings to customers in the form of lower lease payments or rebates. This can benefit lessees because the credit is not subject to individual income limits, unlike the credit for purchasers. However, whether the dealer passes on these savings depends on the dealer’s policy.
Other States
While the search results focus primarily on Colorado’s state-level incentives, other states may have similar or different programs, but specifics were not provided in the search results.
Summary
- Several states, including Colorado, provide tax credits that apply to leasing new electric vehicles.
- These incentives often come as state tax credits that may be assigned or transferred to dealers in exchange for upfront lease discounts.
- The lease typically must be for a minimum term (e.g., two years) to qualify.
- At the federal level, the tax credit for leased EVs goes to the lessor, who may pass savings to lessees.
- It’s important to check with local dealers and state agencies for specific incentive availability and terms.
Therefore, yes, there are state-level incentives for leasing EVs, exemplified by Colorado’s $3,500 tax credit on EV leases, with some dealers providing immediate discounts based on this credit.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-state-level-incentives-for-leasing-electric-vehicles/
