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Looking to go electric on the roads of Denver, Boulder, and beyond? The federal EV tax credit could help you enjoy some significant savings. This government incentive ranges from $2,500 to a substantial $7,500, with the exact amount determined by your battery’s capacity and its compliance with critical mineral and component sourcing standards. When you drive off our Loveland lot in a qualifying EV, you’re not just reducing emissions—you’re potentially saving thousands on your tax bill, thanks to the electric car tax credit. Get all the details below, including when the EV tax credit ends.
Whenever this EV tax credit is mentioned, it often sounds like every electric model is applicable. However, that is false. In addition to the model being new, a qualifying EV also needs to meet the following criteria:
If you’re considering a plug-in or battery EV, you will need to keep in mind that the model you’re interested in has to be built by a qualified manufacturer in order to earn the maximum electric car tax credit of $7,500. Also, an electric vehicle lease might be a great alternative if you prefer not to own the car long-term, but keep in mind that tax credits are only available for purchases.
To qualify for the federal tax credit, a vehicle must meet all the criteria listed above. However, eligibility can vary based on specific vehicle models and their compliance with new regulations. Contact our team to confirm if the new MINI you’re interested in qualifies for the tax credit. Our team can provide up-to-date information on which vehicles are eligible and help you navigate the process to ensure you maximize your savings.
You’ve checked that the model you want is qualified for this tax credit. Now, you’ll need to see if the credit can be applied to your taxes. While the EV tax credit is available for purchases, it’s important to note that an electric vehicle lease will direct the tax benefits to the lending institution.
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 key because it caps how much of the tax credit you can get. For example, if you buy an electric model eligible for the full $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, then you will earn only $1,500 instead. In other words, you can only earn the full amount if you owe at least $7,500 in income tax the year you bought your EV and the model qualifies for the maximum credit.
Lastly, keep in mind that you cannot pass the federal EV 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.
It’s important to take advantage of the federal EV tax credit right away because it won’t be available in the near future. And just when does the EV tax credit end? It is set to expire on September 30, 2025. Secure your tax savings now by exploring the vehicles in the MINI Electric inventory. To get the buying process started as soon as possible, we encourage you to apply for financing online.
Contact us for more information about the EV tax credits or our electric vehicle lease options. When you’re ready to get behind the wheel of your next EV, visit our showroom near Fort Collins for a test drive. But remember: to utilize the federal EV tax credit, you need to act quickly, as this exceptional deal won’t last long.