Federal Tax Credit

 Federal Tax Credit

Electric vehicles (EVs) purchased in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The credit amount will vary based on the capacity of the battery used to fuel the vehicle. (17kWh or greater is $7,500 Max)

hours of capacity

Tax Credit

5 kWh

$2,500

6 kWh

$2,917

7 kWh

$3,334

8 kWh

$3,751

9 kWh

$4,168

10 kWh

$4,585

11 kWh

$5,002

12 kWh

$5,419

13 kWh

$5,836

14 kWh

$6,253

15 kWh

$6,670

16 kWh

$7,087

17 kWh

$7,500 MAX

To be certified for the credit by the manufacturer, the vehicle must meet the following requirements:

  • The vehicle must be made by a manufacturer (i.e., it doesn’t include conventional vehicles converted to electric drive).
  • It must be treated as a motor vehicle for purposes of title II of the Clean Air Act.
  • It must have a gross vehicle weight rating (GVWR) of not more than 14,000 lbs.
  • It must be propelled to a significant extent by an electric motor which draws electricity from a battery which
    • has a capacity of not less than 4 kilowatt hours and
    • is capable of being recharged from an external source of electricity.

The following requirements must also be met for a certified vehicle to qualify:

  • The original use of the vehicle commences with the taxpayer—it must be a new vehicle.
  • The vehicle is acquired for use or lease by the taxpayer, and not for resale. (The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.)
  • The vehicle is used mostly in the United States.
  • The vehicle must be placed in service by the taxpayer during or after the 2010 calendar year.

More information

DISCLAIMER
The information on this page should not be viewed as an official or legally binding document. Other requirements or exceptions may apply. For more detailed information, please consult an IRS tax representative and/or official IRS publications.

EV Charging Stations

This tax credit allows business and consumers to claim up to 30% of the cost of hardware and installation. Businesses are capped at $30,000 per property and individuals are capped at $1,000.