Yes, you can claim both federal and state-level tax credits for an electric vehicle. However, the specifics of how these credits can be applied and combined depend on your location and the regulations in your state.
Federal Tax Credits
- Eligibility: The federal tax credit for new electric vehicles is up to $7,500, while used EVs may qualify for up to $4,000.
- Requirements: To qualify for the full federal credit, the vehicle must meet certain battery and sourcing requirements, and you must have a federal tax liability equal to or greater than the credit amount.
- Application: The federal credit can be claimed on your tax return or transferred to a dealer for an immediate discount at purchase.
State Tax Credits
- Eligibility and Amounts: These vary by state. For example, in Colorado, you can receive a state tax credit of $3,500 for a new EV purchase or lease with an MSRP up to $80,000, and an additional $2,500 if the MSRP is under $35,000.
- Requirements: Check with your state’s specific requirements, as they can differ, such as income limits or MSRP caps.
- Combining Credits: Typically, you can combine federal and state credits, but ensure compliance with both federal and state regulations regarding income limits, vehicle MSRP, and other requirements.
It is crucial to check the specific laws in your state and ensure you meet all eligibility criteria for both federal and state credits.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-claim-both-federal-and-state-level-tax-credits-for-an-electric-vehicle/
