The EV lease tax credit “loophole” — which bypasses domestic content, income, and price requirements for EV purchases — appears widely utilized across all states, as it operates through federal commercial EV tax credits applied to leases regardless of location. However, state-specific EV incentives may influence its relative popularity in certain regions:
- High-incentive states: While all states benefit from the $7,500 federal leasing credit, states like California, Colorado, or New York that offer additional rebates (e.g., California’s $2,000 Clean Vehicle Rebate) see stronger combined savings, potentially driving more utilization.
- Manufacturer targeting: Automakers likely prioritize marketing lease deals in EV-friendly markets with charging infrastructure, such as West Coast states or urban areas, but data confirming this isn’t explicitly stated in available reports.
- Legislative vulnerabilities: Experts note the loophole is federally administered and therefore equally accessible nationwide, which also makes it uniformly susceptible to repeal.
No evidence suggests specific states disproportionately use the loophole itself, as it’s a federal mechanism applied identically across all states. Its popularity stems from bypassing restrictions universally, though state add-ons may amplify its appeal regionally.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-states-or-regions-where-the-tax-credit-loophole-is-more-commonly-utilized/
