Tax Credits and Incentives for Electric Vehicles

2022 Chevy Bolt EUV at Dexter Chevrolet

The query, “What if ‘what if” were no longer a question?” has driven innovation for the Chevy brand in recent years. Whereas the Chevy Bolt has been celebrated for a while, the Chevrolet Bolt EUV and the Chevy Silverado EV are new entrants in the EV market, and their presence only heightens the appeal of and standard for EV vehicles across body styles.

Automobiles That Reward Their Owners

All-electric vehicles are growing in popularity because they reward their owners and lessees. First, they make drivers feel good about their effort to preserve the environment because these vehicles release zero emissions into the atmosphere. EVS also pay their owners and lessees back by having no fuel costs beyond the cost to recharge them.

These vehicles reward owners in another meaningful way, too. And it’s by making them eligible for federal tax credits and incentives.

A Look at the EV Tax Credit

The experts in our Chevrolet finance center will be happy to tell you all about the EV tax credit. The federal tax incentive is typically referred to as a “flat $7,500 credit.”

Right now, you might be wondering, “Is there a car dealer near me who can explain what that means?” Rest assured, we’ll be happy to explain. The $7,500 credit is only worth that much to a person whose federal tax bill is at least $7,500 at the end of the year, or else it’ll be worth less.

For example, if your tax bill is $4,500 at the end of the year in which you purchased an EV, you can only deduct $4,500 from your taxes. By contrast, if your bill ends up being $7,500 or more, you’re eligible to take the full $7,500 credit on your taxes.

When you contact our Chevrolet dealership near Brighton, MI, we’ll explain that the words “up to” are normally used when discussing the EV tax credit. That’s because $7,500 is the max you can deduct, but you may not be eligible for the total allowable credit.

As you look over our Chevy lease offers, you should know that leasing will prevent you from being able to claim the EV tax credit. That’s because your leasing company will claim it as the owner of your leased car.

Looking through the latest EV Chevy cars, you may wonder if you can carry over any portion of the unused credit to future tax years if you don’t exhaust it this year. Unfortunately, that’s not allowed.

To learn more about the EV tax credit, contact LaFontaine Chevrolet Dexter!