Electric Vehicle Credit- Plug in
There are some great incentives for buying an electric vehicle, besides the gas savings and “winning at the pump.” There may be tax credits of $1,875 to $7,500.
First rule—it must be new. Must NOT be leased.
2nd rule—the credit phases out (decreases), and is not available after the car maker sells 200,000 cars.
From July 1, 2019 to December 31, 2019, there is an $1,875 credit still available for new Tesla purchases. It appears there will be no more Tesla credit available after 1/1/2020.
GM is following a close 2nd on hitting the 200,000 mark and reducing the credit. For the 3rd quarter of 2019, many EV’s qualify for $3,750 credit, but by the 4th quarter, it will be only $1,875. Credit in 2020 is doubtful.
Other car makers are not close to credit reductions as
They have not hit the 200,000 car mark yet.
Trap!! If you do not have a big tax bill in 2019, any unused vehicle credit is lost! The credit does not carry over to a future tax year. Make sure that you expect to owe tax the year you buy it.
If you are tired of paying power bills to the utility company, you can invest in Solar Panels for your home.
The panels must be new and the system does not qualify if it is leased.
The IRS gives a 30% tax credit against the cost of the system. The cost includes parts, wiring, shipping, labor, and installation. Do not count roof repairs.
If you do not owe enough tax to use the credit, you get to carry the credit forward to a future year, forever.