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Up To $7,500 Tax Credits Set To Discount Luxury Electric Vehicle Leases

Tax Credits on Electric Vehicles
Tax Credits on Electric Vehicles

Up to $7,500 tax credits have been set to discount the leases on some luxury electric vehicles. Automakers of luxury electric vehicles are now striving to compete with the tax rebates offered by the government for non-luxury electric vehicles.

Lucid Air sedan

Lucid Air sedan

Automakers of luxury electric vehicles are now striving to compete with the tax rebates offered by the federal government for non-luxury electric vehicles. It is known that the federal government has previously launched a revised program that offered tax rebates of up to $7,500 for several non-luxury electric vehicles. Early in January, Tesla has made a series of huge discounts for its luxury electric vehicles. This initiative reduced the prices of vehicles to the point that two of Tesla’s best-selling vehicles are now eligible for tax incentives, as reported by Tucker.

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Discount on Luxury Electric Vehicle Leases

Luxury electric vehicle rival Lucid does not build vehicles affordable enough to recreate Tesla’s move. However, Lucid has also recently announced a discount worth $7,500 to anyone who leases the Lucid Air sedan through the Lucid Financial Services. The Lucid Air is a large, luxurious sedan targeted to contend Tesla Model S. Prices of Lucid Air start at $87,400 and may reach more than $249,000. The discount of $7,500 is set on the first month of the lease. This way the future monthly payments will already be reduced.

Nonetheless, according to Edelstein, these discounts are not only to contend with the federal tax credits that expensive Lucid electric vehicles do not qualify for. The discounts are also due to the Internal Revenue Code 45W deduction (Commercial Clean Vehicle Credit). The deduction allows businesses to claim a credit of $7,500. This credit is eligible for vehicles with a gross vehicle weight rating of less than 14,000 pounds.

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