Tax Credits for Electric Vehicles

Tax credits for electric vehicles (EVs) are financial incentives offered by the government to encourage more people to buy electric cars. When you purchase an eligible EV, you can often reduce the amount of federal income tax you owe, sometimes by as much as a few thousand dollars. This credit doesn't come as a direct refund but lowers your tax bill. Eligibility depends on the vehicle's make, model, and battery size. The goal is to promote cleaner transportation by making EVs more affordable and accessible.