The tax credits for leased and purchased Electric Vehicles (EVs) differ significantly in terms of who benefits and under what conditions:
Purchased EVs
- Tax Credit Amount: Up to $7,500, applicable to new EVs.
- Eligibility Requirements: The vehicle must be assembled in North America, meet specific battery sourcing requirements, and have a sticker price below a certain threshold. Buyers are also subject to income limits to qualify for the full credit.
- Used EVs: The credit is up to $4,000 for vehicles at least two years old, costing no more than $25,000, and purchased from a dealer. Income limits are lower for used vehicles.
Leased EVs
- Tax Credit Amount: The leasing company can receive up to $7,500 as a commercial vehicle tax credit, which typically classifies leased EVs as commercial sales.
- Eligibility Requirements: Leased EVs are not subject to the same assembly, battery sourcing, or pricing requirements as purchased vehicles. Additionally, individual income does not affect eligibility since the credit goes to the leasing company, not the lessee.
- Benefits to Lessees: Any savings are passed on by the leasing company, potentially lowering lease payments. However, the lessee does not directly receive the tax credit.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-the-tax-credit-amounts-differ-between-leased-and-purchased-evs/
