Tax season has arrived, but don't let the thought of crunching numbers dampen your dreams of owning a brand-new EV especially if you've got a refund headed your way! With an overwhelming influx of news and updates each day, it's easy to feel lost. But don't worry, we've got your back! Here's how I’d approach the purchase of a new EV:
- Pick Your Perfect Vehicle Type. As a parent who needs extra space for the kids and all-wheel drive for those frosty winter months, I'm narrowing my search down to SUVs and trucks.
- Price, Incentives, and Setting Your Budget. Everyone's budget will differ, but let's assume I’m aiming to maximize the price and incentives for my purchase. Sounds simple, right? Well, sort of.
Federal Level Incentives: Bear in mind that the Treasury and IRS could update these qualifications. However, as of now, here are the rules to qualify for a $7,500 Tax Credit:
- The vehicle's MSRP must not exceed $80,000 for vans, SUVs, and trucks or $55,000 for other vehicles.
- Modified AGI must not exceed $300,000 for married couples filing jointly, $225,000 for heads of households, or $150,000 for all other filers.
- The vehicle must be for your personal use, not for resale.
- The vehicle must be used primarily in the U.S.
State-Level Incentives: As a Colorado resident, I can take advantage of an additional $2,000 tax credit. Don't forget to check your state's incentives here. Also, it’s probably prudent to consult with your CPA.
With these guidelines in mind, I'm setting my budget at a maximum of $80,000 for an SUV or truck. Keep an eye out for part 2 of this series in Thursday's newsletter, where I'll share my approach to finding my perfect EV!