Electric vehicle (EV) tax credits were put in place back in 2010 to encourage adoption of the then new technology. The Inflation Reduction Act (IRA0, passed last year, extended the EV tax credit to 2032. New rules incentivize manufacturing of vehicles in North America and expand credits to used vehicles. Income and price limits have been put in place that make it harder for some people and vehicles to qualify for the credit. As some manufacturers expand North American manufacturing, the list of qualifying vehicles is likely to change. Check here to see what vehicles currently qualify for tax credits.
If you prefer leasing an EV, some people have reported that a full MSRP credit of $7,500 is being applied to leases, and because of commercial ownership issues for leases, unqualified vehicles may be able to be leased which side-step purchase rules. Check with dealers or the IRS on this issue.
