One of the most significant advantages of purchasing an electric vehicle is the federal EV tax credits. Learn how it works and whether you qualify. Buying an EV vehicle from a certified dealership is the first step, but our Volkswagen financing center can assist you with the rest.
Federal EV Tax Credits: The Basics
Because the Inflation Reduction Act overhauled EVs’ tax credit eligibility, far fewer EVs qualify than before. Good news: the Volkswagen ID.4 is still on the list, and purchasing one may qualify you for up to $7,500 in tax credits. The keywords are “up to,” meaning other variables may determine the actual credit amount you receive.
What’s the Catch?
That’s a good question. There are a few you should know.
- The vehicle must be an EV or PHEV with an MSRP must be below $55,000
- It must be used primarily within the United States
- You must fall within specific income requirements depending on your tax status
- You can only apply for the credit once over the life of the vehicle
- You must retain the vehicle for three years; you cannot buy an EV solely for the tax credit and immediately resell it
State-Level EV Tax Credits
Currently, Utah does not offer state-level tax incentives for EV buyers. You’re only eligible for the aforementioned federal credits. However, you should note the potential for a $200 rebate for purchasing and installing a Level 2 home charging station.
Check Out Our EV Inventory at Strong Volkswagen
While we’re happy to help, remember that any tax-related questions should also be discussed with an accountant. Regardless of your tax situation, there are advantages associated with an EV purchase. Find those benefits when you visit Strong Volkswagen and browse our EV inventory.
