Federal Tax Credit (FTC)
A federal income tax credit up to $7,500 is available for the purchase of a new qualified plug-in electric vehicle with a battery that has at least five kilowatt-hours (kWh) of capacity, uses an external source of energy to recharge (plugs in), has a gross vehicle weight rating of up to 14,000 pounds, and meets specified emission standards. The minimum credit amount is $2,500, and the credit may be up to $7,500.
The credit begins to phase out for each vehicle manufacturer once they have sold 200,000 eligible plug-in electric vehicles in the United States (as counted from January 1, 2010). The IRS will announce when a manufacturer exceeds this production volume and will announce the subsequent phase out schedule on the IRS website.
The credit begins to phase out for each vehicle manufacturer once they have sold 200,000 eligible plug-in electric vehicles in the United States (as counted from January 1, 2010). The IRS will announce when a manufacturer exceeds this production volume and will announce the subsequent phase out schedule on the IRS website.