Driving an electric or hybrid vehicle is a great first step toward going green. But did you know driving an electric car can also put money in your wallet? Unbeknownst to many, driving off the lot in an electric or hybrid vehicle can lead to big tax breaks. So what is this credit? And how do you get it?
Does Your Car Qualify?
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 for your electric or hybrid vehicle.
Are you in the market for a new or used eco-friendly vehicle? Ed Payne’s got ’em, plus so much more! Visit one of our Valleywide dealerships to view our latest selection in new and used models from brands like Ford, Chevy, GMC, Mitsubishi and more!