To determine if your leased EV qualifies for a tax credit, follow these steps:
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Understand the Commercial Clean Vehicle Tax Credit (45W):
- This tax credit is used for both consumer and commercial leases of new electric vehicles.
- It allows up to $7,500 in tax credits for qualifying vehicles, but the credit belongs to the lessor (usually an affiliate of the manufacturer) rather than the lessee (you).
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Check with the Dealer or Manufacturer:
- Contact the dealership or manufacturer to confirm if they are passing the tax credit savings on to you. Some may offer it as a reduced lease payment or down payment.
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Eligibility Criteria:
- Even if you don’t directly qualify for the credit due to income limits, leasing can circumvent these restrictions since the dealer claims the credit. However, the dealer might not always pass the savings to you.
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Vehicle Eligibility:
- Ensure the vehicle you lease is a new plug-in electric vehicle that meets the necessary criteria under the tax law. The specific requirements can be found on the IRS website.
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Keep Informed:
- Stay updated on any changes in tax credits or eligibility rules, especially since there might be revisions after 2025.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-i-know-if-my-leased-ev-qualifies-for-the-tax-credit/
