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Electric Vehicle Federal Tax Credit (IRC 30D)

The Electric Vehicle Federal Tax Credit

 
 

The Federal electric vehicle tax credit, also known as IRC 30D, is a tax incentive created to help promote the adoption of electric vehicles. The tax credit is worth up to $7,500 for each qualifying electric vehicle. This blog post will answer common questions about the federal electric vehicle tax credit, including who is eligible for the credit and when it can be claimed.


How Much Can You Save With the Federal Electric Vehicle Tax Credit?

 
The maximum amount of the credit is $7500, but it starts to phase out once the manufacturer has sold a certain number of qualifying vehicles. The credit also phases out for vehicles with batteries that have less capacity. As a result, the actual amount of the credit that you may be eligible for will depend on the specific vehicle that you purchase. You can find a list of all eligible electrical vehicles on the IRS website.
 

When Can the Federal Electric Vehicle Tax Credit be Claimed?

 
The electric vehicle tax credit can be claimed when you file your taxes for the year in which you purchase a qualifying electric vehicle.

 

What are the Restrictions on Who Can Claim the Federal Electric Vehicle Tax Credit?

 
To be eligible for the credit, you must be the original owner of the vehicle, and you must have purchased it new from a dealer. The credit is not available for used vehicles or leases. In addition, the credit is only available for vehicles that are powered by batteries, fuel cells, or other electric drive systems. Vehicles that are powered by gasoline, diesel, or other fossil fuels are not eligible for the credit.
 

Do You Have to Own a Vehicle for a Certain Amount of Time Before Claiming the Federal Electric Vehicle Tax Credit?

 
No, there is no minimum ownership period required in order to claim the credit.
 

What are the Benefits of Owning an Electric Vehicle?

 
 In addition to the federal tax credit, there are a number of other benefits to owning an electric vehicle. Electric vehicles emit no pollutants, so they are better for the environment than gasoline-powered cars. Electric vehicles also tend to be much cheaper to operate than gas-powered cars since you only need to charge them up rather than buying/refilling gas.
 

Lastly, many electric utilities offer special rates for charging during off-peak hours, which can further reduce the operating costs of electric vehicles. Georgia specific Laws and incentives can be found here.


The federal electric vehicle tax credit is an excellent incentive for people who are considering purchasing an electric vehicle. If you have any questions about whether you are eligible for the credit or how to claim it, be sure to speak with your tax preparer. They will be able to help you determine if you qualify and how to claim the credit on your taxes.


If you are considering installing a home EV charging station, the federal tax credit can help offset the installation cost. Give us a call today at (470) 369-0000 and speak with an iTrust electrician to ensure that your home is compatible with EV charging.

 

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