Electric Car Tax Credits

July 13th, 2021 by

Is it true I can get an income tax credit for purchasing an electric car?

All electric and plug-in hybrid vehicles purchased new in 2010 or later may be eligible for a federal income tax credit of up to $7500.

Are there any state tax credits available?

Each state is different. In South Carolina, there are various laws and regulations related to alternative fuels and advanced vehicles. It is best to check with a tax accountant to determine eligibility.

Are there any limitations or restrictions?

The existing federal EV tax credit is capped at 200,000 vehicles per manufacturer. Tesla and General Motors have reached that threshold. There is a current discussion to lift and or expand the cap.

What I’ve read seems confusing? Can you explain how the credit works?

The EV tax credit is a non-refundable tax credit. If the credit is more than your total tax bill, you will not get that money refunded to you. You may not roll over any excess until the following year. In other words, use it or lose it.

Which Kia vehicles are eligible?

Currently, the Niro PHEV, Niro EV,  and the upcoming EV6 are eligible. However, Kia is committed to an electric future and we expect more models to be introduced annually.

Ask Zola”. Zola Gearding is Kia Country’s Business Manager and is responsible for all customer finance transactions. Zola has over 10 years experience as an automotive Finance Manager. She enjoys helping customers find the most favorable loan terms and helping them to understand the complexities of automotive finance. This monthly Q&A includes the most frequently asked questions and common misperceptions about financing