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Did you know…
… if you purchase an electric vehicle for your business right now, you can get a tax credit?
Let’s take a look at what’s available.
Why EVs? The Business Case for Going Electric
Here’s why businesses are considering electric vehicles:
Generous Tax Credits:
The government's latest incentives for EVs are more than a pat on the back; they're a firm handshake in financial terms, sealing a deal that benefits both your business and the environment.
Under the Inflation Reduction Act of 2022 you can get a commercial clean vehicle credit of 30% of the cost of am electric vehicle up to $7,500 for vehicles with gross vehicle weight ratings under 14,000 pounds and up to $40,000 for all other vehicles.
Even better – there’s no limit to the number of vehicles you can buy and use this credit for.
Long-Term Savings: Fluctuations in fuel prices are no longer an issue when you have an electric vehicle, making budgeting easier.
The 2023-2024 EV Tax Credit: What's New and How to Qualify
2023 isn’t just another year; it’s the year where the EV tax credit gets supercharged. Here’s the lowdown:
Increased Credit Limits: The Inflation Reduction Act of 2022 revamped the electric vehicle tax credit. For some vehicles, businesses can now claim a credit of up to $40,000.
Eligibility Shifts: Not all EVs qualify anymore. The credit now favors vehicles with batteries produced in North America, supporting local industries and job growth.
Used EVs Join the Party: For the first time, used electric vehicles also get a slice of the tax credit pie, though with different eligibility criteria.
Getting Your Business in Gear for the EV Credit
To harness the full power of this tax credit, here’s what you’ll need:
Know the Specifics: The tax credit is intricate, with qualifiers including battery size and where the car was assembled. Research is your roadmap here.
Documentation: Keep every piece of paper associated with your EV purchase. In the realm of tax credits, documentation is king.
Get tax advice: The tax world is an ever-changing labyrinth. You should consult your tax professional to make sure you are able to take advantage of tax credits before committing.
Want to learn more? Check out our Ultimate Guide to Commercial Auto Loans
Combine Section 179 with the EV Tax Credit for Larger Savings
Did you know if you purchase any equipment for your business, including vehicles, you can write off the entire purchase price immediately?
And… check with your accountant… but you may be able to claim both a Section 179 deduction and the EV tax credit.
In some cases, the tax savings could equal more than half the purchase price of the vehicle.
If you need to finance that vehicle… we’re here to help. Call (866) 631-9996 or fill out the form below to get started.
