Td78
Well-Known Member
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Here are some links and info on tax and utility incentives available in the US. This is not tax advice. But I will make any helpful corrections or clarifications if anyone is more familiar with these or others. Thanks to @Minnesotan @LonePalmBJ @KensingtonPark A checklist of incentives you should consider after purchasing your vehicle (with more details on each, below):
US Federal income tax credit
Buyers of the Taycan, like certain other EVs and plug in hybrids, are entitled to a $7,500 Federal income tax credit. These phase-out for each manufacturer is based on total vehicle sales. Monitor your Taycan credit here: https://www.fueleconomy.gov/feg/taxevb.shtml The 4S is expected to be added to this list by the rumored EPA release date of April 10th to 17th.
This credit is only available to buyers of a new vehicle and not available to lessees (in this case it is available to the leasing company).
Information on claiming the credit on your return and for Form 8936 is here: https://www.irs.gov/credits-deductions/individuals/plug-in-electric-drive-vehicle-credit-section-30d
State and local income tax credits
This varies by location. A helpful website is the US Department of Energy. Click your state and learn about how to obtain additional credits and incentives: https://afdc.energy.gov/laws/state
For example, my state offers an additional $4,000 credit this year, and it doesn’t appear to have any limitation.
Sales tax exemptions
While researching the income tax incentives on the DOE’s website above, I noticed that certain vehicles qualify for sales tax exemptions in certain locations. Check for your state as this could be a good chunk of change.
Utility rebates
Many utilities appear to offer rebates for purchases of EVs, charging equipment, or other efficiency improvements you may be considering at the same time. Check the DOE’s website above or your local utility provider. Also consider changing to a time-of-use pricing plan and program charging to start at night. The lower cost of additional energy use (likely at a lower rate due to off-peak charging) may offset the additional you will incur for peak times, particularly if nobody is home during the day. I signed up with my local utility and interested in seeing our family’s usage at various times after my new meter is installed in the next several weeks. Now to figure out how to prevent my family from running the AC from 2-6 pm at peak rates….
Equipment installation Federal income tax credit
This one appears complicated. It is likely not available for a taxpayer subject to AMT as explained here http://aecn.timehorse.com/2011/02/evse-tax-credit-aka-alternative-fuel.html
According to the instructions for IRS Form 8911 https://www.irs.gov/pub/irs-pdf/i8911.pdf, an additional Federal tax credit is available for the cost of charging infrastructure for “all property placed in service at your main home” for an amount of 30% of the property’s cost (up to a credit of $1,000). If you meet key conditions. Note that this benefit is marketed by the manufacturer of at least one type of charger: https://www.clippercreek.com/tax-credits/
Please share any useful tips or other benefits.
- US Federal income tax credit
- State and local income tax credits
- Sales tax exemptions
- Utility rebates
- Equipment Installation Federal income tax credit
US Federal income tax credit
Buyers of the Taycan, like certain other EVs and plug in hybrids, are entitled to a $7,500 Federal income tax credit. These phase-out for each manufacturer is based on total vehicle sales. Monitor your Taycan credit here: https://www.fueleconomy.gov/feg/taxevb.shtml The 4S is expected to be added to this list by the rumored EPA release date of April 10th to 17th.
This credit is only available to buyers of a new vehicle and not available to lessees (in this case it is available to the leasing company).
Information on claiming the credit on your return and for Form 8936 is here: https://www.irs.gov/credits-deductions/individuals/plug-in-electric-drive-vehicle-credit-section-30d
State and local income tax credits
This varies by location. A helpful website is the US Department of Energy. Click your state and learn about how to obtain additional credits and incentives: https://afdc.energy.gov/laws/state
For example, my state offers an additional $4,000 credit this year, and it doesn’t appear to have any limitation.
Sales tax exemptions
While researching the income tax incentives on the DOE’s website above, I noticed that certain vehicles qualify for sales tax exemptions in certain locations. Check for your state as this could be a good chunk of change.
Utility rebates
Many utilities appear to offer rebates for purchases of EVs, charging equipment, or other efficiency improvements you may be considering at the same time. Check the DOE’s website above or your local utility provider. Also consider changing to a time-of-use pricing plan and program charging to start at night. The lower cost of additional energy use (likely at a lower rate due to off-peak charging) may offset the additional you will incur for peak times, particularly if nobody is home during the day. I signed up with my local utility and interested in seeing our family’s usage at various times after my new meter is installed in the next several weeks. Now to figure out how to prevent my family from running the AC from 2-6 pm at peak rates….
Equipment installation Federal income tax credit
This one appears complicated. It is likely not available for a taxpayer subject to AMT as explained here http://aecn.timehorse.com/2011/02/evse-tax-credit-aka-alternative-fuel.html
According to the instructions for IRS Form 8911 https://www.irs.gov/pub/irs-pdf/i8911.pdf, an additional Federal tax credit is available for the cost of charging infrastructure for “all property placed in service at your main home” for an amount of 30% of the property’s cost (up to a credit of $1,000). If you meet key conditions. Note that this benefit is marketed by the manufacturer of at least one type of charger: https://www.clippercreek.com/tax-credits/
Please share any useful tips or other benefits.
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