How Do EV Tax Credits Work?

There are many benefits to electric vehicles like the

Chevy Bolt EV

, including helping you save on fuel and reducing your carbon footprint, but did you know they also have some significant tax benefits? Heres a breakdown of how EV tax credits work at New Jersey Chevy dealerships like Lester Glenn Chevrolet.

What Are EV Tax Credits?

The federal government and the state of New Jersey currently offer non-refundable tax credits on the purchase of electric vehicles. This means you can significantly reduce the sales tax you owe on a new car by choosing an electric vehicle.

How Much Credit Can You Earn?

The federal government offers credits of up to $7,500 on qualifying vehicles. If the car youre purchasing meets the governments critical mineral or battery requirements, youll receive a tax credit of $3,750. Cars like the 2023 Chevy Bolt EV, which meet both requirements, are awarded a $7,500 tax credit.

Does New Jersey Offer EV Tax Credits?

An initiative called ChargeUp New Jersey allowed qualifying EV buyers to earn a state tax credit of $25 per mile of EPA-rated all-electric range up to $4,000. This program is temporarily paused and isnt expected to come back into effect until fiscal year 2024. However, things can and do change, and if that happens, your Chevy dealer will ensure you get every credit for which you qualify.

Who Qualifies for EV Tax Credits?

You can receive EV tax credits on any electric vehicle that meets the governments requirements. However, there are other prerequisites. You must purchase the car for your own use, intending to use it primarily in the US, and its MSRP must be below $55,000.

Some limits are also placed on your modified adjusted gross income (AGI). For instance, couples filing jointly with an AGI of over $300,000 cant receive these credits.

Visit Lester Glenn Chevrolet

Lester Glenn Chevrolet proudly participates in the EV tax credit program by offering qualifying vehicles like the Chevy Bolt EV. Visit us today for

Chevy financing

and to get behind the wheel of one of our affordable and efficient electric vehicles!

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