Electric Vehicle Tax Credit FAQs
Electric cars have become one of the most talked-about automotive trends here at our car dealerships near Lansing. Everyone from local BMW drivers to nearby Mercedes-Benz fans want to know more about all that these zero-emissions products offer in terms of performance, amenities and savings.
That last point is of particular interest thanks to the federal EV tax credit program. In order to encourage adoption of electrified powertrain technology, the government created this exciting incentive that helps eligible buyers of qualifying vehicles claim money-saving tax credits. The result is a potentially significant financial benefit to those that qualify.
Intrigued? If so, read our EV tax credit FAQs, then visit our showroom to learn more about how you may be able to save with the purchase of a new or used electric car in Michigan.
Common Federal EV Tax Credit Questions Answered
How does the EV tax credit work?
The government has established clear criteria outlining whether or not a new electric car qualifies for a full or partial tax credit. Vehicle eligibility requirements include:
- Battery capacity of at least 7 kWh
- Gross vehicle weight rating of less than 14,000 pounds
- Final assembly in North America
- MSRP of no more than $80,000 (SUVs, vans, trucks) or $55,000 (all other vehicles)
Please note that this list isn't exhaustive. The Serra Auto Campus team can share further details about what constitutes a qualifying vehicle according to the latest EV tax credit guidelines.
Can you get a tax credit on a used electric car?
Yes. The latest revisions to the law have made it so that used electric cars may now qualify for tax savings. Used EV tax credit limitations and rules include:
- Age. A vehicle must be at least two years older than the current calendar year when purchased. This means that a used EV bought in 2023 must be no newer than the 2021 model year.
- Price. The qualifying vehicle must have a sale price of $25,000 or less.
- Income. Certain income limitations may apply to the used EV tax credit depending on your filing status. Please see our dealership or an accountant for more details.
What new EVs at Serra Auto Campus qualify for tax savings?
You'll want to speak with our team to determine which new electric BMW, Mercedes-Benz and Porsche models may be eligible for federal EV tax credits. We'll be able to share more details not only about tax credit eligibility, but also your preorder and reservation options for new and upcoming luxury EVs.