Electric cars are still pretty expensive, but their autonomy is getting better and the prices are also starting to drop. While a few years ago, even a smaller electric vehicle that you can barely use to get around town used to cost upwards of $30k, nowadays the prices are much more accessible. However, aside from the better prices and the improved fuel economy, there is one more advantage you can get when trying to save money by buying a new electric car: tax benefits.

The main thing to take home is that your tax benefits will depend on how much you would normally have to pay. Even though many experts will place the federal incentive up to the $7,500 mark, this isn’t always how much you’ll get. A Nissan Leaf, for instance, might require you to pay about $5,000 for tax, which will likely not be charged. However, Uncle Sam will not refund the other $2,500 you should normally be owed.

The good news is tax credits and incentives are typically focused around brand new vehicles. So that works well with the higher price of a new car, which means you’ll be better off buying one. Also, as of April 2021, a considerable number of vehicles and brands actually qualify for tax credit, including names like the Porsche Taycan, the Audi Q5 and the new Toyota RAV4 Prime. You’re likely to benefit from some tax benefits almost regardless of the electric car you buy.

Denver Mile Hybrid Automotive

If you are interested in exploring electric car options, talk to the experts at Denver Mile Hybrid Automotive.