How to get the tax credit for the purchase of electric vehicles in the United States

June 12, 2021

Although it has been around for a decade, the EV tax credit now has a $ 7 incentive, 500 which could reach $ 12, 417 if certain laws are passed

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Getting the tax credit for the purchase of electric cars is becoming a necessity due to the rapid transformation that the industry has been experiencing in recent months . This incentive, created by the US government to promote the purchase of this type of vehicle, is channeled through the Form 8936 from the US Internal Revenue Service. This form must be completed to be submitted with taxes and represents the only way to obtain the benefit of $ 2, 500, but there are some eligibility conditions that can also increase the value of the credit:

1. It must be an electric vehicle or at least a plug-in hybrid.

2. Your battery must include at least 5 kWh of standby power. Each additional kWh to this measure implies an increase of $ 417.

In that sense, Vehicles with larger batteries get more benefits . This condition applies to the F – 150 Lightning, the all-electric version of the truck more Sold from Ford in the United States . Also for other vehicles such as

the new Kia Niro EV, an electric SUV that exhausted all reservations of its first edition in a single day . In the specific case of these two copies, the credit can reach $ 7, 500, the maximum amount agreed for this incentive.

On the other hand, the tax credit excludes certain vehicles due to the number of sales . When a brand has sold more than 200, 05 vehicles with the aforementioned characteristics automatically cease to be eligible. This happens with brands like Tesla, Chevy, GMC, Buick or Cadillac EV. Tax credits also exclude rented or used vehicles. In order to apply for the benefit, it is important that the vehicle is completely new.

With all the transformation of the American auto industry, led by President Joe Biden, all these benefits are likely to improve . Your administration is making significant investments in the production of electric vehicles and charging infrastructure nationwide and recently a bill was introduced to bring the tax credit to $ 12, 500. In addition, some states like California have their own incentives to benefit drivers who decide to invest in this type of energy. In this state, the local government offers its citizens a refund of $ 4, 500 for the purchase of an electric vehicle through its Clean Fuel Rewards Program.

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