Eligible Vehicles for Tax Credit
For information on how to access forms to apply for the tax credits click here.
In addition to cutting-edge technology and performance, state and federal tax credits are helping to make buying an electric vehicle (EV) an even smarter choice. Alongside a federal tax credit of $7,500, New York State residents are able to claim an additional state credit of up to $2,000 when they buy an EV. Together, these incentives significantly reduce the cost of buying an electric vehicle.
For tax years beginning on or after January 1, 2010, but prior to January 1, 2022, the innovative motor vehicle credit and the alternative fuel vehicle credit are refundable. The credit is first applied against the income tax liability of the person who purchases, leases, or converts the qualifying motor vehicle. If the credit exceeds the tax due, the excess credit will be refunded.
Click here for a list of eligible vehicles.
More information on Tax Credits:
Most plug-in electric vehicles are eligible for federal and state tax credits. The federal government offers a tax credit of between $2,500 and $7,500 for vehicles with batteries of at least 4kWh capacity. The Department of Energy and the Environmental Protection Agency update the list of eligible vehicles and the value of the credit for each eligible vehicle every year. Taxpayers must have tax liability equal to or greater than the credit to be eligible. The tax credit cannot be used at the time of purchase, but does reduce the taxpayer’s tax owed dollar-for-dollar.
New York State offers a rebate for the purchase of plug-in electric vehicles. The value of the rebate depends on the battery-only range of the vehicle, and has a maximum limit of $2,000.
These credits can have a meaningful impact on the economics of purchase decisions for both individuals and fleets in New York. See also, economic savings and fleet advantages, and visit our comparison calculator to compare the different aspects of electric vehicle ownership with petroleum-powered counterparts.
Sources:
U.S. Environmental Protection Agency
Nyserda.ny.gov
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