Up To $40,000 Electric Vehicle Tax Credit For New Vehicles— See Who Qualifies

Up to $40,000 in Electric Vehicle Tax Credit can be claimed when new vehicles are purchased. Read and find out in this article who qualifies for the tax credits!

Electric Vehicle Tax Credit [Photo: Texas Breaking News]

The options include 15% of the basis of the vehicle (30% if the vehicle is not fueled by diesel or gas), the incremental cost of the vehicle, or up to $7,500 in tax credits for vehicles with gross vehicle weight ratings (GVWRs) of less than 14,000 pounds and up to $40,000 in tax credits for all other vehicles.

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Who is qualified for the tax credits?

According to the IRS, those who qualify for the Electric Vehicle Tax Credit are businesses and taxes-exempt organizations. There is no limit on the amount of tax credits the businesses and taxes-exempt organizations can claim. For businesses, the tax credits are not refundable. This means that the Electric Vehicle Tax Credit cannot be more than the liabilities owed. A 45W tax credit can be carried over as a general business credits.

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