A federal income tax credit up to $7,500 is available for the purchase of a qualifying electric vehicle. The minimum credit amount is $2,500, and the credit may be up to $7,500, based on each vehicle's battery capacity and the gross vehicle weight rating. Your eligibility for income tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance.

The credit begins to phase out for each vehicle manufacturer once they have sold 200,000 eligible electric vehicles in the United States (as counted from January 1, 2010). The IRS will announce when a manufacturer exceeds this production volume and will announce the subsequent phase out schedule on the IRS website.

You may be eligible for a one-time excise tax credit, up to $3000, when you purchase a qualifying plug-in electric vehicle. Effective July 1, 2017 through June 30, 2020, an individual may be entitled to receive an excise tax credit on a qualifying plug-in electric vehicle regardless of whether they own or lease the vehicle. Business entities may also qualify for the tax credit on up to ten vehicles.

The criteria for a qualifying plug-in electric vehicle are as follows:

• The vehicle must be primarily for use on public streets, roads and highways.
• The vehicle cannot be modified from manufacturer's specifications.
• Must be a new vehicle titled for the first time before June 30, 2020.
• The vehicle must be acquired for use by the taxpayer, and not for resale.
• The vehicle must be capable of recharge from external source of electricity.
• Has a battery capacity of at least 5.0 kilowatt-hours.
• Has a total purchase price not exceeding $60,000.