There are exceptions, explained in the FAQs below.
In addition, about 20 states offer credits or rebates plus intangible benefits such as free charging, free municipal poking, lower highway tolls or single-occupant access to high-occupant vehicle (HOV) highway lanes.
When you buy an electrified vehicle-battery electric vehicle (BEV) or plug-in hybrid electric vehicle (PHEV)-most people are entitled to a credit on your federal taxes of $2,500 to $7,500. If you lease, the credit goes the the title-holder of the car, and some or most of the credit is used to reduce the monthly payments. The credit applies to the year you buy the vehicle and your tax credit is capped at how much you owe the year you buy the car. Federal EV tax credits of $2,500-$7,500 are available for new EVs and plug-in hybrids but not for hybrids.
