Income limits play a crucial role in determining eligibility for tax credits on leased electric vehicles (EVs). However, the tax credits typically apply to the purchase of new or used EVs rather than leases. Here’s how income limits impact the purchase of EVs and implications for leases:
Income Limits for Purchased EVs
- New EVs: The income limits for claiming the tax credit on new EVs are:
- Single Filers: Modified adjusted gross income (MAGI) must be $150,000 or less.
- Head of Household: MAGI must be $225,000 or less.
- Married Filing Jointly: MAGI must be $300,000 or less.
- Used EVs: For used EVs, the income limits are halved compared to new EVs:
- Single Filers: $75,000 or less.
- Head of Household: $112,500 or less.
- Married Filing Jointly: $150,000 or less.
Impact on Leased EVs
Leased EVs typically do not qualify for the same tax credits as purchased vehicles. Instead, the lessor (usually a leasing company) may claim any available tax credits. These credits could indirectly benefit the lessee by potentially lowering lease costs. However, individual lessees would not directly claim the tax credits themselves unless specific arrangements are made with the lessor.
For leased EVs, lessees might not benefit from the income limits in the same way as buyers. The income limits primarily affect buyers by determining whether they can claim the tax credit. For leasing, the focus is more on the leasing company’s ability to claim credits.
If you are considering leasing an EV and want to explore potential savings, you might discuss with the leasing company how any credits they claim could impact your lease terms and costs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-income-limits-impact-the-tax-credits-for-leased-evs/
