Chrysler Pacifica Hybrid plug  

Why should you buy an electric vehicle? If you've been looking to fast forward into the driving future with an electric vehicle in Elgin, you're probably familiar with the federal incentive. The federal electric car tax credit and can be eligible for up to $7,500 depending on several factors. 

When you purchase a Chrysler, Dodge, Jeep, or RAM EV, you may be able to earn this tax credit, ensuring another reason why you should consider buying an electric car. How does the federal tax credit for electric cars work? Find out which models qualify for this electric car tax and more with Elgin Chrysler Dodge Jeep Ram! If you've been debating, "Why buy an electric car?" this is the guide to read.

Is Your Vehicle Eligible for the Federal Car Tax Credit?

So wondering if the 2023 Pacifica Plug-in Hybrid you bought for Bartlett commutes is eligible for this electric car tax credit? Consider the following criteria when you buy the vehicle:

  • The EV needs to use a traction battery of at least 7 kilowatt-hours
  • Features a gross vehicle weight rating of no more than 14,000 pounds
  • Come from a qualified manufacturer 
  • Come in its final assembly in North America
  • Meets defined mineral and battery component requirements (since April 18, 2023)

One thing to keep in mind when learning how the federal tax credit for electric vehicles works is knowing how much you're set to owe in income taxes for the year. Your adjusted gross income (AGI) cannot exceed the following amounts, or the tax credit will be ineligible:

  • $300,000 for married couples filing jointly
  • $225,000 for heads of households
  • $150,000 for all other filers

To claim the EV tax credit, use this form to see if your EV qualifies.

Electric Car Tax Eligibility - How Long?

With more electric models coming to the forefront, the question "Why buy an electric car?" will be a thing of the past. So, how does it apply to the federal electric car tax credit? The tax credit is only available if a manufacturer has sold less than 200,000 eligible plug-in or EV models. For example, Tesla and General Motors (GM) have already reached this point. If you're wondering if you should buy an electric car and want that credit, hesitate no further! 

Save on a Chrysler, Dodge, Jeep, or RAM EV Today in Streamwood! 

Figured out the answer to "How does the federal tax credit for electric cars work?" Find out more about the latest model information, including EVs with Elgin Chrysler Dodge Jeep Ram!