Having an electric vehicle comes with many benefits. Of course, they are better for the environment, offer less pollution, are made of eco-friendly materials and are a source of renewable energy. Electric Vehicles (EVs) are also cheaper to run and maintain than traditional vehicles, and they have reduced harmful exhaust emissions, making it a little easier to breathe. Purchasing an electric vehicle can also come with some monetary benefits in the form of a tax credit!
What is the Qualified Plug-in Electric Drive Motor Vehicle Tax Credit?
This credit was put into place by the federal government as an incentive program for hybrid or fully electric cars in the US. The credit allows anyone that purchased a new electric vehicle to be eligible for a tax credit that can be worth up to $7,500, depending on your car’s model.
To be eligible, the car must meet specific criteria. If the vehicle was purchased after 12/31/2009, has an external plug-in source to recharge, meets emissions standards for the state, uses a traction battery that has at least 4kWh of capacity and has a weight rating of up to 14,000 lbs then the tax credit can be applied.
How Long will the Tax Credit be Honored?
The federal electric car tax credit has a phase-out built into its designed program and it is up to the car’s manufacturer and the sales they have acquired throughout the calendar year. This “phase out” will start the second quarter after the manufacturer has sold 200,000 eligible AEVs (All Electric Vehicle) or PHEVs (Plug-In Hybrid Electric Vehicle).
Am I Still Eligible For This Tax Credit?
Depending on your car model and year, you could be eligible for the full credit or a portion of it. Tesla Motors surpassed it’s 200,000 vehicles last year in 2018, so some Tesla models are only eligible for $3,750. Some estimate that General Motors will be next to hit that 200,000 milestone. All credit amounts for AEVs and PHEVs can be found on the government’s fuel economy information website.
Is this the Only Credit available for Electric Vehicles?
While the qualified plug-in electric drive motor vehicle tax credit is the only tax credit available at the moment for purchasing an electric or hybrid vehicle, there are many other programs, incentives and rebates for other eco-friendly vehicle features, as well as eco-friendly homes. Read on to learn more about additional programs available from the State of Texas and City of Austin.
Replacement Assistance Program
The state of Texas offers a vehicle replacement assistance program and if you meet the necessary requirements you may be able to receive up to $3,500 for an electric or hybrid electric vehicle.
There are also requirements needs on the vehicle you purchase, such as it cannot cost more than $45,000, has to have an odometer reading of 70,000 miles or less and must be purchased through a participating dealership.
Austin Energy Home Charging Rebate
The City of Austin is also getting into the eco-friendly incentives by offering a home charging station rebate! A level 2 charging station gives a faster charge and can also get you a 50% rebate of purchase and installation from Austin Energy.
The maximum amount you can receive is $1,200 for Wi-Fi enabled charging stations and $900 for stations without. To qualify for this, you must also be an Austin Energy customer. Installations can be performed by any licensed contractor, and a full list can be found on the Austin Energy website.
Electric vehicles can help the nation as a whole by offering diverse choices for fuel that can be used for transportation. According to energy.gov, “the U.S. used nearly nine billion barrels of petroleum last year, two-thirds of which went towards transportation.” This leaves us reliant on petroleum, making us more vulnerable to disruption in its supply or even increased prices. With electricity being nationwide, you are able to charge an electric vehicle from anywhere!
Need an EV charger installed in your home? Contact Colvin Electric today, a trusted charging installer, listed on the Austin Energy Website, and familiar with residential vehicle charging stations for all EV vehicle makes and models.