Federal Tax Credits for Electric Cars

There are many benefits to owning an electric vehicle, and one of the best is the electric car tax credit. A common question we receive is, “Is there a federal tax credit for electric cars in 2021?” Yes, there is a federal tax credit for electric cars in 2021. Let’s go over some important aspects of the process, and how to understand how much of a tax credit you’ll receive with this explanation by Millennium Chevrolet. For more information about the federal tax credit near Hicksville, feel free to contact us anytime!

How Much is the Tax Credit?

On average, the federal tax credit for electric cars in 2021 comes to around $7,500. However, this depends on your income and how much you owe. For example, if you owe around $6,000 in income taxes, you won’t be getting a check for the extra $1,500, therefore, the tax credit would not apply. If you are leasing an electric car, the overall tax credit would go toward the manufacturer instead of the lessee. It’s also important to note that depending on which vehicle you drive, your tax credit could vary.

Do the Tax Credits Run Out?

Yes, the tax credits do run out. As electric vehicles become more commonplace around Freeport, the government is doing away with the electric car tax credit. When electric cars first hit the market, they were extremely expensive, and both automakers and the government wanted to offer incentives for people to purchase electric vehicles. For example, Tesla prices have gone down so much that many Tesla customers aren’t eligible for the electric car tax credit.

Do Fuel Cell Cars Qualify?

Hydrogen fuel cell vehicles may qualify for the federal tax credit for electric cars in 2021 depending on which state you reside. For example, some fuel cell vehicles in California are eligible for a tax credit of up to $4,500.

Come Purchase Your Electric Vehicle at Millennium Chevrolet!

Now that you know more about the electric car tax credit, come visit Millennium Chevrolet to see our inventory of electric vehicles. Browse our new vehicle inventory, and meet with our finance center to start the buying process. Be sure to take advantage of our new vehicle specials to save near Douglaston!