1. Understand the Tax Credit
- The federal EV tax credit can be up to $7,500 for new qualifying EVs and $4,000 for used EVs.
- The credit is typically claimed by the purchaser or lessor, not usually by the individual leasing the EV. However, there are ways to benefit indirectly.
2. Dealer and Leasing Company Reporting
- Dealers must report EV sales to the IRS to determine eligibility for the tax credit, including providing a time-of-sale report to buyers.
- For leased vehicles, the leasing company typically claims the tax credit as they are considered the purchaser for tax purposes.
3. Inquire About Lease Terms
- Communicate with your leasing company: Ask if they are passing on any tax credit savings to you through lower lease payments or other benefits. Some leasing companies may choose to share savings with customers, but this is not mandatory.
4. Review Lease Contract
- Check your lease agreement for any language indicating that tax credits or incentives will be factored into your lease payments. Leasing companies might adjust rates or provide rebates if they benefit from tax credits.
5. Market Research
- Compare your lease terms with other available leases for similar EV models. If your payments are significantly lower than the market average, it might suggest that the leasing company is passing on some savings from the tax credit.
In summary, you need to contact your leasing company directly to determine if they are passing on any benefits from the tax credit. Since tax credits are typically claimed by the lessor, there’s no direct mechanism for leasers to receive the credit unless the leasing company chooses to share savings.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-i-know-if-the-manufacturer-of-my-leased-ev-is-passing-on-the-tax-credit/
