Purchasing or leasing an electric vehicle is a smart investment that will save you money over the long run. It’ll eliminate trips to the fuel station altogether. There is also an EV tax credit that helps you save even more money come tax season.
How to Qualify
To be eligible, you must purchase a fully electric vehicle that can be plugged into an external charger. The vehicle must have an electric powertrain that came straight from the manufacturer factory. Hybrid cars do not qualify.
How Does It Work?
You can claim a tax credit of up to $7,500. To receive the credit, you must have a federal tax liability in the year of purchase. To receive the full $7,500 credit, you must have a liability that matches or exceeds that amount. For instance, if you owe $7,500 or more in federal taxes, then you can claim the full $7,500. On the other hand, if you owe $5,000, then you can only claim up to $5,000.
At the state level, there is the California Vehicle Rebate program, where eligible EV car owners can claim up to $2,500. This is in addition to the $7,500 at the federal level.
Kia EV Vehicles
Which vehicles under the Kia lineup qualify for the EV tax credit program? Our inventory includes the Kia Niro EV and Kia EV6, both of which are all-electric cars and therefore qualify for the tax benefit. Before proceeding with a purchase or lease, speak with your accountant to learn more and whether you qualify for the incentive.
Stop by Folsom Lake Kia to see our electric vehicles. Becoming the owner of one of these models comes with a range of monetary benefits, including tax advantages.