Yes, you can claim both federal and state tax credits for the same electric vehicle (EV) purchase, provided you qualify for each.
- The federal government offers a clean vehicle tax credit of up to $7,500 for eligible new plug-in electric vehicles (and up to $4,000 for eligible used EVs), subject to qualifications such as vehicle eligibility, price limits, income thresholds, and final assembly location of the vehicle. This federal credit is claimed on your federal income tax return.
- In addition to the federal tax credit, many states, utilities, or local governments offer their own separate incentives or tax credits for EV purchases or for charging infrastructure installations at your home. These state or local incentives are independent of the federal credit and can be claimed alongside the federal credit, effectively stacking benefits.
To summarize, you can take advantage of the federal EV tax credit and also apply for available state or local tax credits or rebates on the same vehicle purchase. Just ensure you meet each program’s eligibility criteria and follow the appropriate claiming procedures. Dealers often help process the federal credit at the time of sale, and states may have their own processes or applications for their incentives.
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