Are you thinking about purchasing an electric vehicle? You may want to consider purchasing a passenger vehicle or truck that was approved for the Plug-In Electric Drive Motor Vehicle Tax Credit.
How much is the Plug-In Electric Drive Motor Vehicle Tax Credit?
For vehicles acquired after 12/31/2009, the credit is equal to $2,500 plus:
- $417 for a vehicle that draws propulsion energy from a battery with at least 5 kilowatt hours of capacity
- $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours
The total amount of the credit allowed for a vehicle is limited to $7,500. In addition, the credit begins to phase out for a manufacturer’s vehicles when at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States.
Which electric vehicles qualify for the Plug-In Tax Credit?
The IRS has a list of eligible vehicles, which includes the newly added 2022 models. The vehicles added include BMW and Mini vehicles. The BMW 745e XDrive has a credit amount of $5,836. The MINI Cooper S E Countryman ALL4 has a credit of $5,002.
For more information and the current IRS list of eligible vehicles, visit https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit