Everything to Know about the EV Tax Credit

Drivers who are new to electric vehicles often ask about the EV tax credit when they contact our Honda finance center. The EV tax credit is an important consideration even if you have just a cursory interest in EVs because it can benefit you financially. If you're familiar with Gillman Honda San Antonio, TX, you know you can trust us to explain the tax credit to you.

What is the EV tax credit?

Also known as the EV credit, the EV tax credit is a nonrefundable credit offered by the Internal Revenue Service to drivers who purchase eligible electric vehicles or plug-in hybrid electric vehicles. Both new EVs like the Honda Prologue and pre-owned electric models may qualify for the credit but the maximum credit varies. The maximum credit for eligible new and pre-owned EVs is $7,500 and $4,000, respectively.

How do I benefit from the credit?

If you and the EV or PHEV you want to purchase qualify for the credit, you can benefit in one of two ways. You can transfer the credit to a dealership to lower the price of the eligible vehicle you want to get. Alternatively, you can use the credit to lower your federal tax liability for the year in which you received your eligible automobile.

Am I automatically eligible for the EV tax credit?

No matter how committed you are to preserving the environment, you have to meet certain criteria to claim the EV tax credit regardless of how you intend to use it. Depending on how you file your taxes, your adjusted gross income must be below $150,000 - $300,000 for a new EV or lower than $75,000 - $150,000 for a pre-owned model. If someone else claims you on their tax returns, you will not qualify for the tax credit, unfortunately.

Which vehicles are eligible?

To qualify for the tax credit, new Honda vehicles must also meet some requirements. Their MSRPs must be below a designated threshold depending on their body style. They must also have undergone final assembly in North America.

Can I charge an EV Near San Antonio, TX?

You can charge a Honda EV at home or any of the thousands of public charging stations located throughout the United States. The Honda Prologue can gain up to 65 miles of driving range in just 10 minutes if you charge it using a DC Fast Charging station. To see if you'll qualify for the EV tax credit when you purchase or lease a Honda Prologue, apply for Honda financing now.