Reader Danno reminds us of the Inflation Reduction Act of 2022 which enacted a potential $7,500 tax rebate for purchasers of an electric vehicle. That comes as a full refund on your taxes; essentially a $7,500 discount on the car price – assuming you owe at least $7,500 in taxes. The rebate is not applicable for a car lease.
For vehicles purchased since mid-April 2023, and continuing through 2032, you’ll get a $7,500 tax credit if the vehicle meets the critical minerals requirements and the battery components requirements. To be eligible, your modified adjusted gross income (AGI) may not exceed $300,000 for married couples filing jointly, $225,000 for heads of households, or $150,000 for all other filers.