An Explanation of the EV Tax Credit

If you want to limit your impact on the environment, you likely have a growing interest in electric cars. Learning about the EV tax credit when you contact our Subaru finance center will probably make you even more eager to purchase or lease an electric SUV because that credit can help you financially in one of two ways. When you visit Gillman Subaru San Antonio, our team will explain the benefits of the tax credit extended by the IRS.

What is the EV tax credit?

Unlike some other provisions issued by the Internal Revenue Service, the EV tax credit is straightforward. The EV tax credit is akin to a reward for purchasing or leasing a new EV like the Subaru Solterra or buying a pre-owned one. The maximum credit is $7,500 for new automobiles or $4,000 for pre-owned electric vehicles.

How does the credit benefit me?

There are two ways the tax credit might benefit you. First, you can transfer the amount of the credit you qualify for to a dealership to lower the purchase price of the EV you want to get. Second, you can use the tax credit to lower your federal tax burden for the tax year in which your EV is delivered to you.

May I carry over the unused portion of the credit?

No, you cannot carry over any portion of the credit you don't apply to your taxes. You also can't collect any of the credit once your tax liability reaches $0.00.

Which vehicles are eligible for the EV tax credit?

Strict criteria exist for new Subaru vehicles and other EVs and PHEVs to qualify for the tax credit, which shouldn't be a surprise. For starters, the vehicles must have a battery capacity of at least seven-kilowatt hours. They must also be manufactured by a qualified automaker and undergo final assembly in North America.

Will I qualify for the credit at your Subaru dealership near San Antonio, TX?

Prospective car owners and lessees must also satisfy certain requirements to be eligible for the tax credit. Depending on your tax filing status, your adjusted gross income must be below $150,000 - $300,000 and you must get an EV for your own use, not to resell it.

Your use of the EV must also be limited primarily to the United States. If someone else claims you on their tax return, you will be unable to claim any portion of the credit. To see if you're eligible, apply for Subaru financing now.