EV tax credits drop in 2020

Those considering the purchase or lease of an electric vehicle should consider that state tax credits for most types decrease Jan. 1, 2020.

Current credits range between $5,000 and $20,000 for the purchase of, or conversion to, an all-electric (EV) or plug-in hybrid electric vehicle (PHEV), depending on its category. Those credits will drop between $1,000 and $4,000 as of 2020, with additional drops in 2023 and 2026.

Qualifying leases are eligible for credits between $2,500 and $10,000. Those also drop in 2020 – between $500 and $2,000 – and again in 2023.

Federal tax credits range from $2,500 to $7,500, based on the vehicle type and its battery capacity, and most will go unchanged in 2020.

The U.S. Department of Energy’s fuel economy website includes tax credit info for all makes and models of both all-electric and plug-in hybrid vehicles. Visit www.FuelEconomy.gov for more information.

IREA also has a webpage – www.IREA.coop/electric-vehicles – customers can visit for info and resources. It includes links to an EV buying guide, charging station map, EV cost calculator and additional info on tax credits.

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