If you find you’re in the market for a new car, tax savings might not be the first thing on your mind. But did you know, the IRS offers credits between $2,500 and $7,500 when you purchase a plug-in electric drive vehicle? Both 4-wheel and 2 or 3-wheel vehicles are eligible, with some stipulations, all of which can be found on the IRS website.
One such stipulation states that, after 200,000 of a particular hybrid make and model are sold to consumers in the USA, the credit for that vehicle begins to phase out. The U.S. Department of Energy has a helpful chart of eligible cars and credit amounts, in addition to further information on the Phase Out plan by sales number.
By helping to save the environment with a fuel efficient vehicle, you may find you can also help save yourself some tax dollars!