To ensure that the tax credit is included in your lease contract for an electric vehicle, follow these steps:
- Understand the Tax Credit Loophole: Leased electric vehicles are classified as “commercial vehicles” under the Inflation Reduction Act, making them eligible for the full $7,500 federal tax credit without meeting certain sourcing and income requirements. However, this credit belongs to the lessor (dealer), not the lessee (you).
- Negotiate with the Dealer: Since the dealer receives the tax credit, you’ll need to negotiate with them to pass on the savings. This can be done in the form of reduced lease payments or an upfront discount.
- Include the Credit in the Lease Agreement: Ensure that any agreement to pass on the credit savings is documented in the lease contract. This could include specific language about how the credit will be applied (e.g., as monthly savings or an initial discount).
- Review the Contract Carefully: Before signing the lease, review the contract to verify that the terms of the tax credit savings are clearly stated. Make sure you understand how the credit will affect your lease payments.
- Keep Records: Maintain records of any agreements regarding the tax credit to ensure clarity throughout your lease period.
By following these steps, you can increase the likelihood that the tax credit benefits will be passed on to you through your lease agreement.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-can-i-ensure-the-tax-credit-is-included-in-my-lease-contract/
