Several incentives are available to help reduce the higher upfront costs of electric vehicles (EVs), primarily through federal tax credits and state programs:
Federal Tax Credits
- New EV/PHEV Credit: Up to $7,500 for qualifying new electric and plug-in hybrid vehicles. Starting in 2024, buyers receive this credit directly at purchase as an immediate discount.
- Used EV Credit: $4,000 or 30% of the vehicle’s cost (whichever is lower) for used EVs priced under $25,000.
- Income Eligibility: New EV credits require adjusted gross income below $150k (single), $225k (head of household), or $300k (joint filers). Used EV credits have lower thresholds.
State-Level Incentives
- California: Rebates up to $7,500+ when combined with federal credits. Specific programs like the Clean Vehicle Rebate Project (CVRP) offer additional savings, though details for 2025 are pending.
- Other States: Many states provide additional rebates, tax exemptions, or perks like HOV lane access (check local programs).
Eligible Vehicles (2025 Examples)
- Tesla Model 3: All trims qualify for the full $7,500 credit.
- Chevrolet Silverado EV: Eligible for $7,500.
- Toyota Prius Plug-in: Qualifies under PHEV criteria.
- Used EVs: Models like 2020-2022 Nissan Leaf or Chevy Bolt may qualify for the $4,000 credit.
Note: Battery-sourcing rules tighten annually, so eligibility lists change frequently. Always confirm a vehicle’s status at the time of purchase.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-incentives-are-available-to-offset-the-higher-upfront-costs-of-evs/
