Over the holiday season, the IRS approved even more automobiles to be eligible for the Electric Vehicle tax credit. The autos are made by BMW, Honda, Jaguar, Mini, Range Rover and Subaru. The EV credit maxes out on some models at $7,500, but this is still very good news.
The exact amount takes some figuring and before you buy, and you need to pay attention to your chosen automakers’ EV sales. Once a manufacturer sells a lot of these alternative energy autos or light trucks, the value of the tax break starts to disappear. That is what happened to Tesla.
There are still plenty of other car companies and luxury auto manufacturers that produce plug-in vehicles. The full range and EV credit-available options are found on the IRS page here: Qualified Plug-In Electric Drive Motor Vehicle Credit.
The IRS has added to its online list some new EVs that that qualify for the tax credit:
• 2021 Honda Clarity Plug-in Hybrid;
• 2021 model year Jaguar IPace (HSE, SE, S models);
• 2021 MINI Cooper S E Hardtop;
• 2021 Range Rover PHEV, and Range Rover Sport PHEV; and
• 2020 and 2021 Subaru Crosstrek Hybrid.
The IRS says the newly EV credit eligible BMW, Honda, Jaguar and Mini models all qualify for the maximum $7,500 credit. The Range Rover models will get purchasers a $6,295 EV credit. The Subaru tax credit maximum is $4,502.
How to claim the EV tax credit? You must fill out Form 8936 along with Form 1040. If you purchased your EV more than 3 years ago and the vehicle is still eligible for the tax credit, you can file an amended return to claim your credit.
Reach Out To Us: If you’re in the market for a new ride and an electric model works for you, check out the credit availability. It could make a difference not only on what’s parked in your driveway, but also on your taxes since a tax credit is a dollar-for-dollar reduction of any tax you might owe. Remember it’s a nonrefundable credit, but you will save on gas! Contact us toll free at 855-542-7537 or at CPA@Fuoco.com.
