Manufacturers vary in their willingness to pass the federal EV tax credit on to lessees, and whether they do often depends on their leasing and financing arrangements. Here is a detailed overview:
How the EV Lease Tax Credit Works
- When leasing an EV, the federal tax credit (up to $7,500) is claimed by the lessor—the manufacturer or its financing arm—not the lessee.
- This credit can be passed on to the lessee by the dealer or manufacturer as a reduction in the lease price or as a down payment credit, effectively lowering monthly lease payments or upfront costs.
Manufacturers More Likely to Pass on the Credit
- Some manufacturers explicitly advertise that they pass the federal lease tax credit to consumers:
- BMW offers discounted leases on certain vehicles, reducing customers’ monthly costs by applying the credit.
- Audi and Volkswagen promote an “EV Lease Bonus,” which is essentially the federal tax credit passed through to customers.
- Dodge refers to its lease credit as a “Hybrid/Electric Federal Tax Credit.”
- Other manufacturers may use less clear terminology such as “Lease Bonus Cash” (Mercedes-Benz) or “lease cash” (Lexus), which can include or overlap with tax credit pass-throughs but are not always explicitly tied to the federal credit.
What to Watch For
- Since the tax credit belongs to the lessor, customers must confirm with the dealer or financing company whether the credit is indeed passed on. This may require negotiation.
- Some dealers may not pass on the credit in full or at all; transparency varies.
- Dealers often refer to the credit as “pass-through,” “capitalized cost reduction,” or “45W credit” (the Internal Revenue Code section for the commercial clean vehicle credit).
- The availability of passing the credit through is subject to change and can be checked on resources tracking these offers.
Summary
| Manufacturer Examples | Known Lease Credit Pass-Through Terms | Pass-Through Likelihood |
|---|---|---|
| BMW | Explicit discounted leases | High |
| Audi, Volkswagen | “EV Lease Bonus” | High |
| Dodge | “Hybrid/Electric Federal Tax Credit” | High |
| Mercedes-Benz | “Lease Bonus Cash” (less explicit) | Possible |
| Lexus | “Lease Cash” (less explicit) | Possible |
In conclusion, manufacturers like BMW, Audi, Volkswagen, and Dodge are more likely to pass the federal EV lease tax credit to lessees as part of their advertised lease deals. Others may do so less transparently or not at all. Customers should explicitly ask and negotiate with dealers to ensure they receive the full benefit of the tax credit on leased EVs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-specific-manufacturers-that-are-more-likely-to-pass-on-the-tax-credit-to-lessees/
