You’ve probably heard about the federal incentive if you have been researching an electric vehicle (EV) to buy. But what is it, and how does the federal tax credit for electric cars work? The federal tax credit starts at a minimum of $2,500 and can go up to $7,500, depending on the car’s traction battery capacity and gross vehicle weight rating.
When you purchase an eligible EV, you may be able to earn this credit, yet another reason why a driver like yourself might opt for one. Find out which models qualify for this credit and if you can enjoy this incentive below with the finance team at #1 Cochran.
Which Models Are Applicable for this Electric Car Tax Credit?
Whenever this electric car tax credit is mentioned, it often sounds like every electric model is applicable. However, that’s not true. In addition to the model being new, a qualifying EV also needs to meet the following criteria:
● Draws propulsion using a traction battery that has at least 5 kilowatt-hours (kWh) of capacity
● Uses an external source of energy to recharge the battery
● Has a gross vehicle weight rating (GVWR) of up to 14,000 pounds
● Meets specified emission standards
● It has to be primarily driven in the United States
Suppose you’re considering a plug-in or battery EV. In that case, you have to remember that a qualified manufacturer must build the model you’re interested in to earn the maximum tax credit of $7,500. The battery pack must be rated for at least four kWh of energy storage and can be recharged from an external source. Other qualifications under the Inflation Reduction Act include where the vehicle was built and the parts sourced.
● 2024 Cadillac Lyriq: $80,000 MSRP or below
● 2024 Chevrolet Blazer EV: $80,000 MSRP or below
● 2024 Chevrolet Equinox EV: $80,000 MSRP or below
● 2022-2024 Chrysler Pacifica Plug-In Hybrid: $80,000 MSRP or below
● 2022-2024 Ford F-150 Lightning Standard & Extended Battery: $80,000 MSRP or below
● 2024 Honda Prologue: $80,000 MSRP or below
● 2023-2024 Volkswagen ID.4 Standard, S, Pro, Pro S, Pro S Plus: $80,000 MSRP or below
EV and PHEV Tax Credits Up to $3,750 for Sale at #1 Cochran
● 2024 Audi Q5 PHEV 55 TFSI e quattro: $80,000 MSRP or below
● 2024 Audi Q5 S Line TFSI e quattro: $80,000 MSRP or below
● 2022-2024 Ford Escape Plug-In Hybrid: $80,000 MSRP
● 2022-2024 Jeep Grand Cherokee 4xe: $80,000 MSRP
● 2022-2024 Jeep Wrangler 4xe: $80,000 MSRP
● 2024 Nissan Leaf S/Leaf SV PLUS (2024): $55,000 MSRP
You’ve checked that the model you want qualifies for this tax credit. Now, you’ll need to see if it can be applied to your taxes. First, remember that this tax credit is only available if you buy the vehicle. If you lease an EV instead, the tax credit will go to the lending institution, as they technically own it.
Once you know you’re set on buying an EV, you’ll need to consider how much you will owe in income tax for that year. This amount is critical because it caps how much tax credit you can get. For example, if you buy an electric model eligible for a total of $7,500 and you owe $3,000 in income tax, then you can only earn $3,000 of the credit. Similarly, if that model is only eligible for $1,500, you will earn only $1,500. In other words, you can only earn the total amount if you owe at least $7,500 in income tax the year you bought your EV, and the model has an eligible electric car tax credit for $7,500.
Lastly, remember that you cannot pass the tax credit to someone else even if you decide to sell your EV. Only the registered owner of an eligible model can claim this credit, so if you want to buy a used model instead, you won’t be able to access this credit.
Federal tax credits for electric vehicles are currently divided into two time frames: 2010-2022 and 2023 and after.
Suppose you bought an electric vehicle between 2010 and 2022. In that case, the federal tax credit is available until a manufacturer has sold 200,000 eligible plug-in electric models or EVs, after which it will phase out. The IRS has a list of qualifying manufacturers.
The Inflation Reduction Act updated the Federal EV tax credit rules for vehicles purchased starting in 2023 and lasting until 2032. So, there is plenty of time to buy a new EV and take advantage of this great tax incentive.
Now that you know the answer to “How does the federal tax credit for electric cars work?”, take the next step and see if you can claim it. Check out the new vehicle specials at #1 Cochran and speak with our finance team to see how else you can save on your EV purchase.
We also invite you to use our trade-in valuation calculator and put your current vehicle towards your down payment. Contact us with any questions, and we’ll happily get you into the electric world at an affordable price.
What’s the real return on investment when leasing or purchasing an electric vehicle from #1 Cochran? Fuel savings play a big role but it goes deeper than that. The #1 Cochran finance department has the details you need to understand the cost-benefit of electric vehicles.
The days of EVs being limited to luxury budgets are fast coming to an end as nearly all new car brands are rolling out all-electric vehicles with much lower initial price points than the luxury EVs you’ve been seeing in Pittsburgh for a few years. While EVs still have higher sticker prices than their gasoline-powered peers, that’s just part of the economic story behind EV ownership. Here are some of the ways you’ll get your electric vehicle return on investment:
When you look at the cost-benefit of electric vehicles, you have to take the big-picture approach because long-term savings are where you’ll recoup your investment. Consumer Reports found that EV owners can expect to save on average $800-$1,000 per year on fuel costs.
EVs have lower maintenance costs than gas-powered vehicles, so your investment in an electric car will also be returned in maintenance savings, which are about half of what owners of gas-powered vehicles pay. In the lifetime of your EV, this comes to about $4,600 in maintenance savings.
While it’s still a bit early to have solid numbers on this front, it also appears EVs will incur less depreciation than gasoline vehicles, giving them a stronger resale and trade value.
As manufacturers are starting to debut electric models of their gasoline-powered favorites, it’s easier to compare the cost-benefit of electric vs. gas vehicle ownership. Find out how the investment in an electric car — the 2024 Ford F-150 Lightning— compares to the gas-powered F-150. This data is based on a driver in Pennsylvania who travels 20 miles a day, five days a week. Half of that driving is done on highways.
2024 Ford F-150 2WD 5.0 L (Gasoline) vs. 2024 Ford F-150 Lightning 4WD (EV):
Annual Fuel Use:
● 2024 Ford F-150: 275 gallons
● 2024 Ford F-150 Lightning: 0 gallons
Costs to Fill the Tank:
● 2024 Ford F-150: $78-122
● 2024 Ford F-150 Lightning: $0
Annual Fuel Cost (Based on 15,000 Annual Miles):
● 2024 Ford F-150: $2,650
● 2024 Ford F-150 Lightning: $1,100
Annual Savings on Fuel vs Average New Vehicle:
● 2024 Ford F-150: $4,250 More Over Five Years
● 2024 Ford F-150 Lightning: $3,500 Saved Over Five Years
Cost to Drive 25 Miles:
● 2024 Ford F-150: $4.45
● 2024 Ford F-150 Lightning: $1.80
Annual Greenhouse Emissions (U.S. Tons Per Year):
● 2024 Ford F-150: 7.7 Tons
● 2024 Ford F-150 Lightning: 0.0 Tons
You can save nearly $2,500 per year on fuel costs when you choose an electric Ford F-150 over the gas-powered counterpart while cutting your emissions by nearly 7,000 pounds of CO2. The Vehicle Cost Calculator from the Alternative Fuels Data Center via the U.S. Department of Energy can help you run these numbers for other makes and models.
While the federal tax incentives for EV purchases have changed in recent years, many customers can still secure a federal tax credit of up to $7,500 when buying an EV. The best way to determine how much of a tax break your purchase is eligible for is to review the latest listings with the U.S. Department of Energy.
Ohio drivers will save even more money by being exempt from regular vehicle emissions testing. One verification inspection is required to validate the exemption. If you live in Ohio and install a Level 2 home charger powered by the Firelands Electric Cooperative, you can qualify for a $250 rebate.
Since tax breaks and incentives tend to change, contact the #1 Cochran finance department to get the most up-to-date information on government-funded ways you’ll see a return on your investment in an electric vehicle.
With the largest EV selection in the Pennsylvania, Ohio and West Virginia tri-state area, #1 Cochran has an electric vehicle that’s right for you. We’d love to help you start enjoying your electric vehicle return on investment by offering new vehicle specials. These rotating discounts can include vehicles from our all-electric inventories. Today’s the day to find the electric vehicle that’ll help pay for itself.
Understanding the electricity and home charger installation costs is essential as you consider making the switch to an EV. At #1 Cochran, we provide comprehensive insights to guide you through the process. Not only that, we also offer an entire page where you can shop and compare home chargers. You’ll even receive special pricing when you purchase through us.
Electric vehicles are becoming increasingly popular due to their environmental benefits and cost savings on fuel. However, transitioning to an EV comes with initial investments, particularly the home charger installation costs and the ongoing electricity costs to charge your vehicle.
● Installation Costs: Installing a home charging station can vary widely in price, depending on the type of charger and the specifics of your home electrical system. On average, electricity and home charger installation costs can range from $500 to $2,000. This includes the price of the charging unit and labor. Our partner Emporia Energy can help lower expenses with fast, affordable installation.
● Electricity Costs: How much electricity do EVs cost? This is a common question among new EV owners. The cost to charge an EV can vary based on your local electricity rates and the efficiency of your vehicle. On average, an EV will consume between 15 to 30 kilowatt-hours (kWh) to travel 100 miles. Depending on your local electricity rates, this translates to a cost of $3 to $6 per 100 miles.
● Charge your vehicle overnight and wake up to a fully charged EV every morning.
● Charging at home is often cheaper than public charging stations, especially if you charge during off-peak hours.
● A home EV charger can increase the appeal and value of your property.
How much electricity do EVs cost over time? It’s important to consider the long-term savings. Although the upfront electricity and home charger installation costs may seem significant, the cost of electricity for charging an EV is substantially lower than fueling a gasoline vehicle over the lifetime of the car.
A #1 Cochran EV Specialist can assist you with navigating the process of choosing a home charger and making informed decisions about your EV purchase. Transitioning to an electric vehicle is not just an investment in your future but also a step towards a more sustainable planet. Contact us today to learn more.
As the automotive industry shifts towards sustainability, EVs are becoming increasingly popular. However, many potential buyers and current owners wonder about EV service costs and the overall financial commitment of electric vehicle ownership.
#1 Cochran’s EV Specialists have created this page to explain the specifics of electric vehicle maintenance costs, offering clarity on how much you’ll pay for electric vehicle maintenance and highlighting the typical service costs associated with these futuristic vehicles.
EV service costs are generally lower than those for traditional internal combustion engine vehicles.
This is primarily because EVs have fewer moving parts, leading to less wear and tear over time. For example, you’ll never pay for an oil change again. Because EVs have an electric powertrain instead of a gas-powered engine, they don’t need oil to operate.
However, electric vehicle maintenance costs can vary based on the make, model, and usage of the vehicle. Routine inspections and minor adjustments can cost between $100 to $200, but here are key points to consider:
The battery is the heart of an EV, and while it’s built to last, eventual replacement is a significant part of electric vehicle maintenance costs. The good news is, many manufacturers offer warranties covering the battery for 8 to 10 years.
#1 Cochran’s finance department can provide even more peace of mind. We offer extended battery warranties through our partner Assurant EV One.
Though not a frequent expense, battery replacement is a significant one, potentially ranging from $5,000 to $15,000, depending on the vehicle model and battery capacity. EVs also use a cooling system to keep the battery at an optimal temperature, requiring periodic maintenance.
EVs are heavier than their gasoline counterparts due to the battery’s weight, potentially leading to faster tire wear. Regular tire maintenance is crucial. Expect to spend $75 to $100 for tire rotation and more for replacement if needed.
Thanks to regenerative braking, EV brake pads tend to last longer. Brake replacement costs can vary but are generally lower than those for gasoline cars, because they require less frequent replacements.
Understanding the costs of electric vehicle maintenance is crucial for current and prospective EV owners. At #1 Cochran, we’re here to help you navigate these costs, offering reliable service. We have the most advanced tools, OEM parts and EV certified equipment to get the job done. Plus, we also offer EV roadside assistance with available towing and on-the-spot charging. Schedule an appointment today.
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