Technology

Understanding Electric Car Tax Credit

Electric cars come with an advantage – they do not have any sort of emissions and thus it does not contribute to environmental degradation. This is one of the reasons why they are eligible for tax credit. You may be wondering whether your vehicle qualifies for the tax credit or not.

The US government provides tax credit to the electric car owners to encourage them to buy these eco friendly cars. If your car qualifies for the credit, you should get a credit within the range of $2500 to $5700. The type of the vehicle, its size and battery are a few factors that would decide the credit you would get.

We thought of clearing your doubt about a few of the questions –

Is the credit available for hybrid cars?

Yes. The tax credit is available even for hybrid cars. Do note, however, that only plug in hybrids are considered eligible for hybrid cars. Given the fact that an electric car is bound to have a larger battery capacity, it may be a smaller battery on a hybrid car.

There are several types of hybrid cars and if your car does not come with a plug in type, it would not be eligible for ta credit.

Are there any credits for Tesla?

Well, Tesla was one of the prime manufacturers who received a electric car tax credit. However, with the government phasing out the limit on the number of electric cars that get tax credit, Tesla would be the first manufacturer to lose credit.

There has been a limit of 200,000 units per manufacturer and Tesla has already crossed the limit. If you have bought a Tesla in 2018, there may be lesser chances of getting access to an electric car tax credit.

Can used electric cars get credit?
No. You must have a newly bought electric car to be eligible for the ta credit. Any used car will not bee eligible for any sort of credit. Since the tax credit is designed to create an encouragement to buy an electric car, it can get the ta credit only once.

How to claim Electric car tax credit?

Well, the process is simple. If you have bought a new electric car and if you qualify for the credit, you should fill up the form 8936. You can get it from the official IRS website.

Make sure you supply every information about the car and the details specifically required for availing the credit. You would also need to have the sales invoice or any other similar document in hand. See what is electric car tax credit.

 

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