Federal Tax Credit

[EcoDad]

I noticed on Ford's website that they recommended looking into a possible $7,500 tax credit available on some electric vehicles. I researched as best I could and found this:

http://fueleconomy.gov/feg/taxevb.shtml

Ford's suggestion of looking for a tax credit seems crafty but I could not find the new 2012 focus electric on the list of vehicles that qualify. Anyone know if looking for a tax rebate is a good suggestion to follow when it comes to purchasing a new focus ev?

 

[KeiJidosha]

I noticed on Ford's website that they recommended looking into a possible $7,500 tax credit available on some electric vehicles. I researched as best I could and found this:

http://fueleconomy.gov/feg/taxevb.shtml

Ford's suggestion of looking for a tax credit seems crafty but I could not find the new 2012 focus electric on the list of vehicles that qualify. Anyone know if looking for a tax rebate is a good suggestion to follow when it comes to purchasing a new focus ev?

Currently, a 2012 Focus will make you eligible for $7,500 credit on your 2012 tax return. Site you listed will get updated sometime before 2013. There is discussion of the $7.5k tax credit becoming a rebate at time of purchase, and there are more 2012 vehicles to add to the list of qualifying vehicles. You should be sure you have the $7.5k tax liability to make use of the credit. Nissan LEAF owners that did not have enough tax liability looked to lease as Nissan applied the credit against the lease value. Not sure if Ford does likewise. Also, some states and cities have credits or rebates for EV owners and on EVSE (charger) equipment. Plug In America and the mynissanleaf.com forum have more information on the subject.

 

[redEV]

+1 ... also, although it should be obvious, this is currently a Federal Tax Credit so you'll need to pay for the entire price of the vehicle (less any trade) up front and then of course file your tax return -- also important although perhaps not obvious, the 'credit' will not carry over anything not used until the next tax year; basically you can use it once and that's it (unlike for instance capital losses). Obama has legislation that ups the $7,500 to $10,000 and changing it so it goes to the dealer (similar to the old 'cash for clunkers' program) but it seems unlikely that that will pass. Your other option would be to lease it as that doesn't have an income tax liability limit and Ford gets the credit and applies it as a down payment on your lease. The state level EV credit can come in the form of a straight rebate or no sales tax, etc. so be sure to check what's available and hopefully you'll be pleasantly surprised at how much it reduces your EVENTUAL out of pocket ... here in IL we get a 10% off MSRP (up to $4K) so a base car would be $27,780 ($39,720 - $7,500 - $3,920) before destination, taxes and fees which is more in line with a 'regular' new car average purchase but the string attached is that it needs to be purchased and NOT leased.

 

[levy0105]

When people buy electric cars, they get federal tax credits. Now, there are a growing number of third-party companies that convert regular cars to electric vehicles, and those cars are eligible for the EV tax credit too. A selling point for electric vehicles, besides never paying for gas again, is that the federal government will knock $7,500 off the buyers’ tax bills. However, only a few electric cars are available from major car companies and supply is fairly limited. Right now, there is the Nissan Leaf, the Tesla S or the Mitsubishi Miev. Some converted electric cars still get the EV tax credit.