Purchasing an electric car is a great way to reduce your carbon footprint, save money on fuel, and take advantage of government tax credits and other special financial incentives.
Many states and provinces still offer generous tax credits for electric cars, as well as special financing programs that make it easier to purchase one.
Let’s explore the different types of incentives available so you can make an informed decision about whether or not purchasing an electric car is right for you.
Federal Tax Credits for electric cars purchase
The federal government offers tax credits for purchasers of new plug-in hybrid and all-electric vehicles. This credit can be up to $7,500 depending on the vehicle’s battery capacity.
The credit begins to phase out after a manufacturer has sold 200,000 eligible vehicles in the U.S., but many manufacturers have yet to reach this limit so they continue to offer the incentive.
State Tax Credits for electric cars purchase
Many states also offer tax credits and rebates for electric cars. These vary significantly by state, but some common incentives include sales tax exemptions, registration fee reductions, or even direct cash rebates of up to $5,000 or more.
Some states are even offering additional incentives such as free public charging stations or access to high-occupancy vehicle lanes on highways even when only one person is in the car!
Special Financing Programs
If you’re interested in purchasing an electric car but don’t want to pay full price upfront, there are several special financing options available from banks and automakers alike.
Many banks offer low-interest loans specifically tailored towards electric vehicle purchases that can help spread out payments over time while still providing significant savings compared with traditional gas-powered vehicles.
Some automakers like Tesla offer their own financing programs that make it easier to purchase one of their vehicles through monthly payments rather than a lump sum payment at purchase time.
Conclusion:
Electric cars are quickly becoming more popular due to their environmental friendliness and cost savings compared with traditional gas-powered cars. To help encourage more people to switch to electric cars many governments are offering generous tax credits and other financial incentives.
Special financing programs that make it easier for drivers everywhere to transition away from gas-powered vehicles and into cleaner alternatives such as plug-in hybrids or all-electric cars.
Now is a great time to explore what types of incentives may be available in your area so you can determine if an electric car is right for you!
Main image courtesy: Genesis
