Driving an eco friendly vehicle is a great first step toward going green. But did you know an eco friendly car can also put money in your pocket? Unbeknownst to many, driving off the lot in an eco friendly ride can lead to big tax breaks. So what is this credit? And how do you get it?
Is the electric car you’ve got your eye on eligible for a tax break?
It depends. The federal electric car tax credit only applies to certain electric and hybrid vehicles. The amount of the credit is based on the capacity of the vehicle’s battery pack. Although all battery-run electric cars are eligible for the full amount in tax credits, the same doesn’t apply for plug-in hybrids – which can present some confusion for buyers and owners. View the entire list of qualifying vehicles here.
You’ll need to fill out the IRS Form 8936 when you file your taxes. Check with your tax professional should you have any questions about qualifying for a tax credit.
Are you interested in purchasing a new or used vehicle? Your local Ed Payne auto dealerships has a wide selection of models to choose from. Whether Chevy, Ford, GMC or Dodge, our cars and trucks are among the best in the business. Stop by one of our auto dealerships today!
