If you lease an electric vehicle (EV) for a year, you cannot directly claim the federal EV tax credit. The tax credit belongs to the lessor, typically an affiliate of the manufacturer, not to the lessee. However, you may benefit from the tax credit indirectly if the manufacturer or dealer passes the savings to you as a reduced lease price or down payment.
Here’s how it works:
- Eligibility for the Tax Credit: The tax credit is available to the lessor under the Commercial Clean Vehicle Tax Credit, also known as Internal Revenue Code 45W. This allows for a tax credit of up to $7,500.
- How the Tax Credit Works for Leases: The finance company purchases the vehicle and leases it to you, accessing the tax credit. If the dealer agrees to pass the savings on to you, this can be used to reduce your lease payments or as a down payment.
- Income Limits Do Not Apply: Since the dealer holds the tax credit, your income does not affect your ability to benefit from it through reduced lease costs.
To ensure you can benefit from this arrangement, it’s important to check with the dealer or manufacturer to see if they are passing on the tax credit savings through their leases.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-claim-a-tax-credit-if-i-lease-an-ev-for-only-a-year/
