The rise of popularity with electric vehicles in the 21st century has brought on a wave of exclusivity compared to gas-powered vehicles. Eligible Kia electric vehicles near the areas of Ithaca, Corning, and Cortland, NY, can receive a tax credit depending on the make, model, and standards set by the federal government.
As part of our ongoing mission to assist our customers, Maguire Kia has put together a guide to help drivers like you better understand how you can receive a tax credit with your Kia car purchase. Let's begin. Contact us with questions!
How Much Tax Credit Can I Receive?
The maximum tax credit you can receive is $7,500. This number is negotiable, however-the final credit total is factored in based on the income taxes owed during a particular year. In layman's terms, the federal tax credit will only cover what you would typically pay out of pocket in income tax-up to $7,500. If you owe less than $7,500, the credit will simply cover that amount and nothing more.
However, it's worth noting that not every electric vehicle is eligible for up to $7,500. Some makes and models-like the Toyota Prius Prime-max out at $4,502. The same rules above also apply to tax credits that fall below the $7,500 threshold.
Those who lease an electric vehicle will not receive the tax credit. The federal tax credit will instead go to the manufacturer providing the lease. Still, that credit is likely to be considered toward the cost of the lease, thus lowering your monthly payments.
Will Electric Vehicle Tax Credits Always Be Around?
Electric vehicle tax credits have an expiration date-at least, for now. As electric vehicles climb in popularity, the federal government plans to phase out the federal tax incentive. As demand rises, the once-expensive cost of electric technology will continue to decrease in price with the increased purchases of more electric vehicles.
Three manufacturers have already ended-or plan to phase out-the federal tax incentive as well. All-electric cars from Tesla no longer qualify and are soon to be joined by both GM and Nissan. So be sure to ask if you believe the Kia electric automobile you're interested in may not qualify for a tax credit.
Can I Pass On These Tax Credits?
In a word, no. Neither the dealership, nor the new owner, can pass on electric vehicle tax credits. Conversely, the only driver eligible to receive these tax incentives is the original owner of an electric car that qualifies. This remains true even if the original owner didn't apply for the credit.
Be sure to mention the tax incentive if you're searching for a used Kia electric car. You may find that a new Kia model may prove to be a better deal overall with the incentive applied. Either way, you'll save dollars where you need them most.
Speak to Us About Your Tax Credit Questions
The next time you're around the Ithaca, Corning, and Cortland, NY, areas, be sure to ask the Maguire Kia team any questions you may have about the federal tax credit for Kia electric vehicles. We'd be delighted to provide you any kind of assistance-so contact us or stop by today!
AdChoices