Federal tax credits for Zero-Emissions Vehicles (ZEV) and Plug-in Hybrid Electric Vehicles (PHEV) range between $2,500 to $7,500, with factors such as battery capacity determining how much owners are eligible to receive. To meet the tax incentive's standards, a ZEV or PHEV must have a battery with a minimum capacity of 4 kilowatt-hours. Vehicles with a battery capacity of 5 kWh or greater are eligible for an additional $417 of tax credit added for every Kilowatt-hour in excess of 4 kWh. Vehicles such as the Nissan LEAF, with a 24 kWh capacity battery, will be eligible for the maximum $7,500 credit.

Please note, the credit has begun a phase-out period for certain manufacturers who have sold at least 200,000 electric vehicles for use in the United States.  For further information on federal tax incentives and to verify if the credit is still available for your vehicle, visit www.fueleconomy.gov. Additionally, local jurisdictions may also have incentive programs. Check with your local jurisdiction to find out what they offer.

New to EVs? CVRP’s EV 101 has all the information on electric vehicles.