Purchasing one of the new sleek Audi electric models gives you a one-of-a-kind combination of efficiency, style, and performance that helps you lower your carbon footprint. Nashua drivers are cashing in on the electric car tax credit, allowing them to save thousands on the cost of any new electric vehicle that Audi Stratham offers. How does the federal tax credit for electric cars work exactly? The federal tax credit starts at a minimum of $2,500 and can go up to $7,500, depending on the car's traction battery capacity and gross vehicle weight rating. Purchasing a qualifying EV means you're potentially eligible to receive the electric car tax credit, giving you even more incentive to prepare your home for the arrival of a plug-in electric model.
Which Models Qualify for the Electric Car Tax Credit?
All Manchester drivers curious about purchasing an EV from Audi Stratham must understand the prerequisites for receiving the electric car tax credit. The new EV must be manufactured after December 31, 2009, and meet the following criteria:
- Draws propulsion using a traction battery that has at least 5 kilowatt-hours (kWh) of capacity
- Uses an external source of energy to recharge the battery
- Has a gross vehicle weight rating (GVWR) of up to 14,000 pounds
- Meets specified emission standards
- Has to be primarily driven in the United States.
This tool comes in handy for calculating the amount of the electric car tax credit you can expect to receive. In addition to these rules, battery packs in your car must have a rating of 4 kWh of energy storage and use an external source for recharging.
How Do I Receive the Electric Car Tax Credit From Audi Stratham?
The following Audi vehicles are eligible according to the rules listed above:
- 2022 Audi e-tron GT (e-tron GT/RS e-tron GT models)
- 2022 Audi e-tron S (standard and Sportback models)
- 2022 Audi Q4 50 e-tron Quattro (standard and Sportback models)
- 2020, 2021, 2022 Audi e-tron Sportback
- 2019, 2021, 2022 Audi e-tron
- 2016, 2017, 2018 Audi A3 e-tron
- 2016 Audi A3 e-tron ultra
- 2021 Audi A7 55 TFSI e Quattro
- 2022 Audi A7 TFSI e Quattro
- 2020 Audi A8L PHEV
- 2021 Audi A8 L 60 TFSI e Quattro
- 2020 Audi_Q5 PHEV
- 2021 Audi Q5 55 TFSI e Quattro
- 2022 Audi Q5 TFSI e Quattro
Assuming you've made a qualifying purchase from the list above, the next step requires figuring what you owe in income taxes. This tax figure is critical because it determines how much of the electric car tax credit you can claim. For example, if the model you purchase is eligible for $7,500, and you owe $4,000 in income tax, you'll only earn $4,000 of the credit. You're only eligible for the whole $7,500 if you owe at least that amount in income tax from the year you bought your EV, and the model qualifies for that level of the electric car tax credit.
It's also worth noting that you cannot pass the credit to any other drivers in Portsmouth, even if you've sold and signed the vehicle over to another party. Only the original registered owner is eligible to claim the credit.
How Long Can I Claim the Electric Car Tax Credit?
The more EVs manufacturers release, the closer dealers get to the point of ineligibility. Once each respective manufacturer sells 200,000 qualified plug-in electric models, the credit phases out after the subsequent second quarter. This limit has already disqualified Tesla, General Motors, and other manufacturers on the official IRS list.
Updates to the Federal EV Tax Credit
Starting August 16th, 2022, the available $7,500 tax credit for electric vehicles will have new requirements regarding where the vehicle is manufactured. Only an EV that undergoes final assembly in North America is eligible for the credit. The IRS recommends using the National Highway Traffic Safety Administration's (NHTSA) Vehicle Identification Number (VIN) decoder to determine the final assembly location for a particular vehicle if you want to enjoy this tax credit.
Besides this requirement, there are more that are going into effect over the next 2 years, such as an MSRP cap, income eligibility, and minimum battery size. Along with these changes, there will also be a new used EV credit, commercial EV credits, a credit transfer to dealerships, and a charging infrastructure tax credit.
Is There Any New Hampshire EV Tax Credit?
Yes, there is! If you want more savings, there is a New Hampshire electric vehicle tax credit offered by New Hampshire Electric Co-op (NHEC). They are giving residents a $1,000 rebate for purchasing or leasing a new or used electric vehicle. NHEC customers can earn a $300 charger incentive for up to two installations per household and take advantage of discounted off-peak charging rates. Members with existing Level 2 EV chargers can also qualify for the $300 rebate if they sign up for off-peak charging!
Get Your Audi EV at Audi Stratham Today!
Hopefully, we've answered the question of "How does the federal tax credit for electric cars work?" for all of our customers who are eying an EV like the 2022 Audi e-tron GT. Get qualified for financing, then contact us to set up a test drive, so you can drive off in a brand-new EV from Audi Stratham!
