Federal Tax Credit for Electric Vehicles

The Federal Tax Credit for Electric Vehicles (EVs) is a financial incentive that reduces the amount of federal income tax you owe when you buy a qualifying electric car. Typically, the credit can be up to $7,500, encouraging people to choose cleaner, zero-emission vehicles. The exact amount depends on factors like the vehicle's battery size and certain manufacturer limits. This incentive aims to promote environmentally friendly transportation, helping offset the higher upfront cost of EVs and support the transition to sustainable energy use.