If you’re considering buying an electric vehicle, it is essential to be aware of the advantages of purchasing the latest model. Since 2010, you can recover the amount you paid for electric vehicles because of a federal tax credit geared towards electric cars.
This tax credit can mean you could recoup some of the costs of purchasing the vehicle at $7500. That means the amount you pay to the dealership doesn’t necessarily what the car will cost you. However, not all EV is eligible for a tax credit, so buying a brand-new Tesla will not guarantee you an even lower tax bill.
If you’re searching for a new electric vehicle and would like to get back some of the cost, Here are ten fantastic EVs that qualify for the $7,500 tax credit offered by the federal government.
Nissan Leaf Nissan Leaf is the least expensive EV currently available across the United States, with prices starting at $27,400. Include the tax credit, and the cost could go much lower, to as little as $19,900 when you’re eligible for the entire $7,500 credit. We wrote about this in the course of our Nissan Leaf review. We mentioned that this specific EV offers excellent value for money, one of the reasons it’s among our picks of the most electric cars.
There’s a decent selection of options and power available within this low-cost model. The cheapest version of this Nissan Leaf offers 149 miles of range, 50 kW fast charging with 148 horsepower, and a top speed of 89 mph. The more expensive 62 kWh version comes with two26 miles range, a top speed of 99 MPH, 215 horsepower, and 100 KW of rapid charging. Both models feature 15.4 cubic feet in trunk area; however, folding the rear seats down and using the passenger seat increases the volume to 116 cubic inches.
The only drawback is that Nissan is moving closer to the tax credit threshold of sales. This means that it’s just one more step before the vehicle is no longer eligible, and you’ll need to pay the total amount.
Volvo’s performance wings might not be one you’re well-versed in; however, Polestar makes some attractive automobiles. They’re all adorable. Polestar 2 is no exception and is among the most electric cars you can purchase right now. The fact that it’s eligible to receive the entire $7,500 tax credit from the federal government is just the cherry on the cake.
Pricing starts as low as $45,900 that can give you up to 300 miles of EPA-rated distance and a 0-60-in-just 7 seconds. If you’re willing to shell out an additional $4,000, you can purchase the dual-motor version with the range reduced to 249 miles and a faster 0-60 time of 4.5 seconds. One of the most significant aspects we reviewed during the Polestar 2 review is that it runs using Android Automotive OS, which allows Google Assistant access to more car systems than ever before. Unfortunately, Apple CarPlay will not be available shortly.
Also, you get Volvo’s Pilot Assist autonomous driver system. It’s also an elegant-looking car that can stand out and not look odd on roads.
Audi e-Tron GT
There are several Audi e-Tron models out there. However, our top pick is one called the Gran Tourer model. It’s pricey, with a starting price of $102,400; however, tax credits can ease the burden a more. However, you can get plenty in return, not including the 0-60 speed of 3.1 seconds and two38 miles EPA rating range.
The back seats feel a bit closed to the outside world, which is one of the only negatives of the Audi E-Tron GT review. This car is nonetheless a blast to drive. It’s not just due to the acceleration but also because it’s designed to keep you further away from the ground than in an SUV.
Furthermore, you will get 270kW charging, which will allow you to go from 5 to 80 percent charge in just 21 minutes. Also, it comes with an assortment of interior technology. Virtual heads-up displays, multiple-color LED interior accent lighting, adaptive cruise control, a 10.1-inch information display, and hands-free voice command.
Ford Mustang Mach-E
Ford’s first (and at present, only) EV on sale hit the ball off the field. Prices start at $43,895. The time from 0-60 is 3.5 seconds, and you’ll achieve impressive improvement in as much as 314 miles of driving range from when we wrote the Ford Mustang Mach-E review. It doesn’t require a clever person to recognize that the Mach-E is a car that has an option for everyone, even if it’s not an actual Mustang, strictly speaking.
Along for the ride will be Ford’s Pro Pilot 360 2.0 driver assistance package. It comes with all the standard options like blind-spot warning and lane-keeping, adaptive cruise control, and much more. BlueCruise is the auto-driving system, is one of the rare systems that allow you to remove your hands from the wheel for specific periods.
This 15.5-inch portrait touchscreen also comes with personalized features because of cloud connectivity. Additionally, it can dial buttons instead of focusing on touchscreen controls like the other electric cars.
Hyundai IONIQ 5
Suppose you’re searching for an affordable EV that isn’t outrageously priced. However, it’s more feature-rich than the least expensive EVs available. Take a look at the Hyundai IONIQ 5. It comes with 300 miles of range with 350kW fast charging, a 0-60-in in 5.2 minutes, and an affordable price starting at $44,000.
The interior is equipped with two 12.3-inch display screens, one serving as the central infotainment unit and the second as the digital gauge cluster behind the wheel. Premium models are also equipped, including blind-spot monitors, intelligent parking assist, and an augmented heads-up display that is raised in reality. They can be instrumental, even though they aren’t precisely frivolous.
We mentioned it during the Hyundai Ionic 5 test: the car with fantastic technology, outstanding performance, and a functional design that’s sure to everyone.
Jaguar’s electric SUV of the highest quality is a monster, priced at $71,300. However, you’ll get a beautiful car from it. The I-Pace comes with an EPA-rated range of 234 miles. An 0-60 time of 4.5 seconds, a top velocity of 124 miles per hour with 20-50 cubic feet of storage space, depending on the option to fold the rear seats down or not.
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Being a Jaguar model, the I-Pace is a premium experience inside and comes with various cutting-edge technology. Autonomous lane keeping, a virtual heads-up display that can be customized for the best convenience (and profiles to keep track of the driver), two-zone climate controls, and a 12.3-inch infotainment screen that supports the wireless version that works with Apple CarPlay and Android Auto.
After spending two weeks in it to drive to conduct Our Jaguar I-Pace review, I can confirm that it isn’t a vehicle to be overlooked.
It’s the Kia EV6 isn’t too dissimilar to that of the Hyundai IONIQ 5 when it comes to appearances are concerned. This isn’t surprising considering that both share the identical platform — Hyundai’s E-GMP. However, that doesn’t mean it’s any less of an attractive choice, mainly since the starting price of $40,900 is more than $3,000 lower than the lowest price of the IONIQ 5. What exactly can you expect for the money you spend?
Kia is launching this car with the EPA-rated range of 310 miles with a 0-60 speed of 4.5 seconds, a semi-autonomous driving mode with as much as 502 cubic inches of storage space, and up to 2300 tonnes of towing capability. Kia will also boast a spacious interior with lots of advanced technology, such as the AR heads-up display and two 12.3-inch infotainment and driver-information displays.
Choose a 350 KW fast charger, and you’ll be able to recoup two-thirds of a mile of travel in 18 minutes. If you’re looking for a small crossover, the Kia EV6 is one to look into.
Mercedes Benz EQS
The electric truck market is close to expanding, but Rivian has made it available at the right time. While it’s not the only electric truck on the market, it is the only one that qualifies for an income tax deduction from the Federal government. This means that the $67,500 initial price could be in the range of $60,000.
The only way to get an R1T for that price depends on getting the dual motor model that comes with regular range batteries, which won’t be available in 2024. In the meantime, you’ll be looking at $72,000 or $79,500 and with all the benefits from the tax credit that goes with it.
In exchange for that price, you get the quad-motor AWD, a 314 miles EPA range estimate Driver and automated driving assistant, Alexa support, a built-in tire compressor, a 15.6-inch information display, and a 12.3-inch digital gauges as well as numerous other cool tiny features that are hidden in the. The truck even comes with a towing capacity of 11,000 pounds and an impressive 0-60-second time of just 3 seconds.
Volvo C40 Recharge
Volvo is well-known for its well-built vehicles that are practical and safe, even if somewhat boring and boring. This isn’t the case, and we’ve got our Volvo C40 Recharge review pointing out this fantastic EV brimming with elegance. This is precisely what you’d expect from an SUV of the present. Its price starts at $59,845. This is far from being the most expensive electric vehicle on the market.
At that price, you have a 5-seater vehicle that offers itself 14.7 cubic feet of trunk space. This increases by 45.7 cubic feet when the back seats fold back, allowing you to store many things in the rear. There’s also a trunk for those who need to keep a few things or a few bags of grocery items.
Acceleration can accelerate from 0-60 in just 4.9 seconds. This is in addition to a claimed EPA mileage that extends to 223 miles. The 150 kW fast charger can get the user from 0-80 percent in just 40 minutes. It’s not the best specifications, but you benefit from high-tech features like a driver’s display of 12 inches with a 9-inch central information monitor (with buttons) and an auto-assistant driver to make your travels easy.
What exactly is an EV Federal Tax Credit? And what is its purpose?
A federal tax credit for electric vehicles Federal tax credits for electric cars can be a means to ease the cost of purchasing an electric vehicle that is brand new. Since EVs don’t come cheap, tax incentives are an excellent way to motivate individuals.
Tax credit for federal residents is a way for those who purchase the plug-in electric option to receive a tax credit of up to $7500. This applies to electric cars that are all-electric and plug-in hybrids. Still, the amount you’re eligible for is contingent upon the battery capacity of the vehicle in question. Therefore, certain combinations with low power, such as those that plug into the Toyota Prius, mean you’re only eligible for a portion of the tax credit.
As a tax credit, the amount you can claim will depend on the income tax you have to pay. For instance, if you only owe $5,000in taxes, your tax credit is valued at $5,000 and will not transfer to the next tax year.
Which carmakers are eligible to receive this tax deduction?
All automakers can take advantage of Federal tax credits providing they sell electric or plug-in hybrids. This is a significant amount of them. In the end, only two sizeable electric automobile manufacturers don’t qualify as eligible because they’re selling too many vehicles. Currently, the limit is 200,000 sales for any plug-in car.
The only companies not anymore included include Tesla along with General Motors. They crossed the threshold for eligibility in 2018 and 2019, in both cases, before being subsequently phased out using fewer tax credits over the next 12 months.
As of the date of writing at the time of writing, no other car makers are no longer eligible for this tax break. However, reports suggest that Toyota and Nissan are coming close. So if you’ve got the desire to purchase an electrified vehicle from one of these companies and would like the tax credit, a bit of a rush could be beneficial.
There’s a complete list of vehicles and the amount their credits are worth on the Department of Energy’s website (opens in a new tab).