Good news, for those of you in the market to buy a car and contemplating buying an electric car, the details are finally live on how to get your tax credit. Very often car dealers and salesmen love to assure customers that they will get tax credits so that you buy. The reality is that care dealers and salesmen are not tax experts. Do not take tax advice from anyone who is not a designated and respected tax expert, please.
Too often I have clients who are devastated when I explain to them that their $100,000 vehicle is not deductible and they do not get a tax credit for it even though the dealer or salesman promised them they would. Please dont be one of those people! Do you research and ask tax advisors before you make a purchase (or lease!) of a vehicle of any sort.
So, today the IRS released their approved list of vehicles which CAN get the tax credit in 2023 and beyond. The maximum tax credit is $7,500. The base credit is $2,500 and then builds up to $7,500 depending on the components in the specific vehicle you are buying. This is where the devil is in the details. Please make sure that your choice gets the maximum credit and not something in between.
For additional help, please reach out to me. Let’s do some tax planning and strategy work to make sure this vehicle and this credit are the best choice for you and that now is the best time for you.