Thanks to the 2016 electric car tax incentives and rebates, along with improved pricing from the automakers, it’s never been easier on your wallet to enjoy the zero-emissions, all-electric driving benefits of a modern-day EV. While finding the MSRP of an EV is a simple process, however, making sure that you’ve cashed in on all available discounts to minimize a stated sticker price can be a challenge.
A good starting point, of course, is the vehicles themselves. According to §30D of the Internal Revenue Code, effective for all vehicles purchased beginning on Jan. 1, 2010, “a vehicle that draws propulsion energy from a battery with at least 5 kilowatt hours of capacity” is eligible for both the basic $2,500 income tax credit for “certain new qualified plug-in electric drive motor vehicles” and an additional, incremental amount of credits, based on battery capacity above 5 kWh and capped at $5,000. Now, this being the IRS, there are some restrictions, but at this stage, all of the EVs currently on sale in this country from the traditional automakers do qualify for the full $7,500 credit. There are also separate credits available for plug-in hybrid vehicles, too.
And there’s a surprisingly wide range of state and local tax incentives for EV purchasers as well, in some cases providing substantial financial benefits and not just in the states you’d expect. Colorado, for instance, offers up to $6,000 in state tax credits for purchasers of electric vehicles, which comes on top of the federal tax credit, while Louisiana furnishes a tax credit for up to 10 percent of the cost of an electric vehicle (up to $3,000). A robust state-by-state breakdown of incentives for hybrid and electric vehicles also can be found at the Website for the National Conference of State Legislatures.