Chicago Electric Car Tax Credit

Under this program the purchase of a new electric vehicle is eligibe for a tax credit worth 7 500 as long as it meets the following criteria.

Chicago electric car tax credit.

The credit amount will vary based on the capacity of the battery used to power the vehicle. With only one niche vehicle in a tiny model lineup it could be decades before mitsubishi approaches the. The value of the irs tax credit ranges from 2 500 to 7 500 depending on the electric vehicle in question. The primary federal tax credit you should be looking at is the qualified plug in electric drive motor vehicle tax credit.

Federal incentives for electric vehicles. The qualified plug in electric drive motor vehicle tax credit is the main federal incentive program for electric cars available in the united states. Take note that this tax credit will phase out. It s worth 7 500 in tax deductions.

The credit is 10 of the purchase price of the vehicle with a maximum credit of 2 500. Plug in electric vehicles pevs are motor vehicles that are powered either entirely or partially by rechargeable batteries. Electric car tax credits are available if they qualify. One of the first electric vehicles sold in the u s.

For vehicles acquired after december 31 2009 the credit is equal to 2 500 plus for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity 417 plus an additional 417 for each kilowatt hour of. Once they sell 200 000. Federal tax credits for new all electric and plug in hybrid vehicles federal tax credit up to 7 500. Plug in electric drive vehicle credit irc 30d.

The illinois secretary of state vehicle services department offers specific vehicle registration fees to residents who drive an electric vehicle ev. The federal incentive is only worth 7 500 to someone whose tax bill at the end of the year is 7 500 or more. Illinois vehicle registration fees for electric cars is 251 per registration year. Learn more on this and how to obtain ev license plates below.

Let s say you buy a hyundai kona ev or. These batteries are recharged when connected to the electric grid meaning you can charge. You must have purchased the vehicle in 2012 or 2013 and begun using it in the year in which you claim the credit. How does an electric vehicle tax credit work.

Size and battery capacity are the primary influencing factors. What are plug in electric vehicles. Internal revenue code section 30d provides a credit for qualified plug in electric drive motor vehicles including passenger vehicles and light trucks. Registration fees for il electric vehicles.

Welcome to the city of chicago s one stop shop for information on plug in electric vehicles. Each manufacturer has a separate tax credit. Nearly every type of electric car qualifies for this tax credit.