Electric vehicles have been gaining popularity in recent years, with more and more drivers opting for eco-friendly options. One of the attractive incentives for purchasing an electric car is the federal tax credit of up to $7,500. However, navigating the world of EVs and tax credits can be a bit tricky, as there are a number of criteria that need to be met in order to qualify.
For example, vehicles must be equipped with a battery pack with a capacity of at least seven kilowatt-hours to be eligible for the tax credit. Additionally, there are pricing limitations in place to ensure that only vehicles under a certain price threshold qualify. SUVs, vans, and pickup trucks priced over $80,000 are not eligible, while sedans and coupes are capped at $55,000.
One prime example of the intricacies involved in qualifying for the tax credit is the Tesla Cybertruck. The entry-level, all-wheel-drive version of the Cybertruck is priced at $79,990, just shy of the $80,000 threshold. This means that even a seemingly minor option, such as the $2,000 white interior, can push the price over the limit, making the vehicle ineligible for the tax credit.
In fact, opting for the white interior on the Cybertruck can end up costing buyers an additional $9,500, effectively negating the $7,500 tax credit. Other options, such as the $3,500 Cyber wheels and the anticipated $16,000 range extender, can also push the price beyond the qualifying threshold.
Furthermore, financing the Cybertruck through Tesla at a rate of 5.99% for 72 months can add even more to the total cost. According to CarsDirect, financing a Cybertruck with the white interior could set you back around $97,807, compared to $86,474 for the same vehicle with the standard interior and tax credit.
It’s not just the Cybertruck that requires careful consideration when aiming to qualify for the tax credit. Tesla’s Model 3 Performance, priced at $54,990, also has its own set of limitations. Opting for certain paint colors or interior options can impact eligibility for the tax credit.
However, there is a loophole for those looking to take advantage of the tax credit without worrying about pricing limitations. Leasing a vehicle instead of purchasing can allow drivers to qualify for the $7,500 credit regardless of factors such as MSRP and income.
In conclusion, shopping for an electric car that qualifies for the full federal tax credit requires a keen eye for detail and an understanding of the various criteria in place. By carefully considering options and pricing, drivers can make the most of the incentives available for transitioning to eco-friendly vehicles.