Presently, the federal income tax credit ranges from $2,500 to $7,500. It applies only to purchases of new electric cars and there are various limitations. The House-passed Build Back better bill would increase the tax break to a maximum of $12,500 for new electric vehicles bought in 2022 through 2031. The vehicle’s manufacturer’s suggested retail price can’t exceed $55,000 for sedans, or $80,000 for vans, SUVs or pickup trucks. The credit would begin to phase for taxpayers with modified adjusted gross income over $500,000 for joint filers, $375,000 for household heads and $250,000 for single or married-filing-separate filers. The bills would also allow a lesser credit for people who buy used electric vehicles. Will these prosed higher credits survive in the senate? It is too soon to tell.

Electric Vehicle Tax Breaks

by | Dec 28, 2021 | Tallahassee Tax Service | 0 comments