Impact on Leasing Costs
- Tax Credit Ownership: When you lease an EV, the full $7,500 tax credit goes to the lessor, typically the automaker’s finance division or the leasing company. This is because leased EVs are considered “commercial vehicles” under IRS regulations.
- Savings Passed to Lessee: The leasing company may choose to pass some or all of the tax credit savings to you, the lessee, in the form of lower monthly lease payments or rebates. However, not all dealers pass on the full savings.
- Income Requirements: An advantage of leasing is that your personal income does not affect your eligibility for the tax credit, as the lessor receives it. This means you can benefit from lower lease payments even if your income would disqualify you from receiving a tax credit as a purchaser.
Overall Cost Reduction
The commercial EV tax credit can significantly reduce the monthly cost of leasing an EV, as the savings from the tax credit can be substantial. However, the extent of these savings depends on whether the leasing company decides to pass them on to you. This makes leasing an attractive option for those looking to reduce their upfront and ongoing costs with an electric vehicle.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-tax-credit-affect-the-overall-cost-of-leasing-an-ev/
