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Does the $7500 tax credit work on a lease?

While one reason is high resale value, another is a $7,500 tax credit offered by the federal government for plug-in hybrids and electric vehicles. The leasing company gets the tax benefit and passes those savings to the lessor in the form of a lower monthly payment.

Does a leased electric car qualify for tax credit?

While someone who leases an electric car isn't eligible for the $7,500 federal income-tax credit, automakers usually (but not always) pass all or most of this amount to the buyer to lower the lease payment.

Can you get tax credit for leasing an electric car?

Federal aid The federal program is fairly simple. The government offers an income tax credit of up to $7,500 to the first legal, registered owner of a qualifying new plug-in electric vehicle in the tax year in which it was purchased. If you lease, the credit goes to the leasing company.

What is the tax credit for electric cars in 2019?

The IRS tax credit is for $2,500 to $7,500 per new EV (Electric Vehicle) purchased for use in the U.S. beginning on January 1, 2019. The credit will begin to phase out when at least 200,000 qualifying vehicles manufactured by each manufacturer have been sold in the U.S.

How does $7500 tax credit work?

The federal electric car tax credit is an incentive to encourage Americans to buy hybrid and electric vehicles by lowering the up-front costs of buying one. That means that a $7,500 tax credit would save you $7,500 in taxes.

Do you get a tax credit for leasing a car?

Lease fees usually are far lower than car loan payments and usually include some maintenance. You also can negotiate lease payments and terms more flexibly than you can loan fees and interest. However, you won't get any major tax deductions on a car you lease unless you use it in business.

Do I get a tax credit if I lease a Volt?

Ordinarily, a Chevy Volt costs bout $40,000 to buy, before a one-time $7,500 federal tax credit. That's a hefty monthly payment, even if you figure that, yes, you will be eligible for that big tax credit. When leasing, a customer doesn't get the tax credit.

Do you get a tax credit if you lease an electric vehicle?

While someone who leases an electric car isn't eligible for the $7,500 federal income-tax credit, automakers usually (but not always) pass all or most of this amount to the buyer to lower the lease payment.

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