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A Complete Guide to the Electric Vehicle Tax Credit – What It Is, How to Claim It, and How Much You Could Potentially Save

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You may already know that electric vehicles have advantages such as saving you money on gas and allowing you to ride in the HOV lane at any time of day. That’s a win for your bank account and a massive win for your patience while sitting in primetime traffic on the highway. #Score! But did you also know that purchasing an electric vehicle also comes with a significant financial incentive from the government? Sure, electric cars may be more expensive upfront, but with electric vehicle income tax credit, rebate programs, and of course the change you save on gas, there’s a lot to be said for investing your hard-earned dollars in the more sustainable alternative.

What Is an Electric Vehicle Tax Credit?

Tax credits are tax incentives that give applicable taxpayers a refund of the amount of credit accrued from the total owed to the state or credits given in recognition of taxes already paid in an alternative way to the state, such as “support.” This credit is subtracted from the taxes a taxpayer already owes the government.