To determine if your leased electric vehicle (EV) qualifies for the tax credit, follow these steps:
- Check Eligibility of the Vehicle: Ensure that the vehicle you are leasing is a new electric or fuel cell vehicle. Under the Commercial Clean Vehicle Tax Credit (Section 45W), leased EVs are treated as commercial vehicles, which can be eligible for the tax credit without adhering to strict battery and sourcing requirements.
- Contact Your Dealer or Manufacturer: Since the tax credit belongs to the lessor (usually an affiliate of the manufacturer or dealer), you need to verify if they are passing on the tax credit to you. The dealer might apply it as a rebate or reduce the lease price.
- Understand the Tax Credit Mechanism: The maximum tax credit available is $7,500. However, you won’t directly receive this credit as it is claimed by the lessor. Any savings you might get would be through reduced lease payments or a down payment discount, if the dealer chooses to pass on the credit.
- Income Limits Are Not a Concern for Leases: Unlike purchasing an EV, where your income affects your eligibility for the tax credit, leasing does not have these income limits because the lessor claims the credit.
By following these steps, you can determine if your leased EV qualifies for the tax credit and how it might benefit your lease arrangement.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-can-i-find-out-if-my-leased-ev-qualifies-for-the-tax-credit/
