EV Tax Credit

A blue 2024 Chevy Equinox EV 3LT is shown from the side.

You may be seeing more electric vehicles passing you by on the streets, effortlessly delivering their occupants to all the places they need to go. With zero tailpipe emissions, these environmentally friendly vehicles are having a major impact on our planet, but that’s not all that has drivers rushing to explore the selection of these eco-conscious travelers. Driving an EV also allows you to take advantage of what’s called the EV tax credit, which is available for those who put a qualifying EV into operation during the current tax year. This includes battery electric vehicles (BEVs), as well as plug-in hybrid EVs (PHEVs).

Currently, the tax credit varies based on the type of vehicle you’re driving, as well as whether you purchased it new or used. Depending on which type of vehicle you have, you may be able to receive either $3750 or up to $7500. Certain pre-owned EVs also qualify, capping out at $4000 (conditions apply). These tax incentives depend on the type of vehicle you purchased, as well as income. For example, eligible vehicles include BEVs, PHEVs, and fuel cell vehicles under $80,000 MSRP for vans, trucks, and SUVs and under $55,000 MSRP for all other vehicles. Incomes that qualify for this credit are $300,000 or less for joint filers, $225,000 or less for head-of-household filers, and $150,000 or less for all other filing types.

It’s highly beneficial to take advantage of this nonrefundable tax credit, especially if you want to have the chance to receive more money back on your tax refund. Just by driving an EV, you have the opportunity to receive up to $7,500 when you meet all qualifications, which means that you’re able to place this toward your tax liability, helping you lower what you owe or even eliminate it altogether. You can also utilize this to purchase a new EV, with the ability to transfer this sum directly to a dealership. This will allow you to enjoy a reduced purchase price on an electric vehicle, helping it fit securely into your budget and allowing you to enjoy more reasonable monthly payments.

What Are the Local Incentives?

Here in Amesbury, MA, there are local incentives as well that will make it a no-brainer to drive an electric vehicle. Through the Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) program, you’re able to take advantage of additional benefits just for driving a qualifying EV. In an effort to limit pollution, improve overall air quality, and limit greenhouse gases, the MOR-EV rebate program helps make electric vehicles more attainable for local residents. This means that those who purchase or even lease a qualifying vehicle are able to enjoy a tax rebate of between $3,500 and $6,000.

By registering your zero-emissions vehicle with the state, you may be eligible for this rebate. Vehicles that are included are BEVs and fuel cell vehicles, consisting of passenger cars, a variety of pickup truck sizes, including heavy-duty models, and more. Like the federal EV tax credit, income is taken into account for this rebate. There are also incentives available for fleet vehicles, as well as workplace charging grants through the Massachusetts Department of Environmental Protection Electric Vehicle Incentive Program (MassEVIP). Through these various local programs, EVs are not only more attainable but also more affordable so that we can continue to do our part to save our planet.

The black and red interior of a 2024 Chevy Equinox RS is shown from the passenger seat.

How to Claim the Tax Credit

If you’re wondering how you go about claiming the federal EV tax credit, it’s really quite simple and something that can be done as you’re filing your taxes. With your federal tax return, you’ll need to file Form 8936, which will apply to the year in which you took ownership of your EV. This credit is nonrefundable and can only be applied to your tax liability. This means that once you zero out this liability, you can’t utilize this credit toward any other liability or carry it over to the next tax year. This credit can only be claimed for the year that you put a qualifying vehicle into operation, not when you initially purchased it.

Another way to claim your tax credit is to transfer it to a dealership so that you can put this credit toward the purchase of an EV, PHEV, or fuel cell vehicle. This will allow you to get a discount on an eligible vehicle right away instead of waiting to receive your tax return when your tax filing has been finalized. You will still need to fill out Form 8936 when you file your taxes; then, you’ll need to select to transfer it to a dealership to complete the process.

Be aware that you’ll need certain pieces of information in order to complete the process properly. This includes key information about your vehicle, like VIN, battery capacity, sales price, date of sale, and various information about you, the buyer. Having all of this information already at hand will make the process much more seamless when you go to file your taxes.


The Amesbury Chevrolet logo.

Chevy’s EV Selection

The federal EV tax credit applies to certain vehicles, including BEVs, PHEVs, and fuel-cell vehicles. Fortunately, Chevy has an arsenal of vehicles that qualify for this credit, allowing you to have your pick from a versatile array of options to make your travels better in every way. You’ll find a wonderful selection of all-electric SUVs, including the crowd favorite Equinox EV, which is one of the most affordable compact electric SUVs around. Not only can you expect an outstanding range, but you’ll also get to take advantage of a practical yet stylish cabin and plenty of space for your passengers and gear.

For those seeking out more space in their EV, the midsize Blazer EV will deliver. You’ll find that this stylish SUV is a showstopper from every angle, and when you desire an athletic ride, you’ll find it in this Chevy icon. The Blazer EV is a dream to drive and provides you with plenty of legroom to sit back and relax during your journey, and when you want to make a statement on the streets, its Camaro-inspired styling will do the trick.

If you’re in need of a dedicated workhorse, look no further than the mighty Silverado EV, which showcases phenomenal towing capabilities as well as outstanding range. This truck allows you to complete challenges on the job site and then cruise effortlessly down the highway with unmatched efficiency and sustainability leading the way. If you’re in need of a full-size truck that’s powerful, durable, and efficient, the Silverado EV is it. You’ll also get to take advantage of discontinued models, including the Chevy Bolt and larger Bolt EUV, which provide you with plenty of range and a comfortable driving demeanor, perfect for everyday commuters.

As you can see, Chevy has an arsenal of EVs that will enhance your experience, no matter where you’re traveling. The bowtie brand offers vehicles that qualify for the federal EV tax credit, along with local incentives, making this selection the one to choose when you want to save money on your taxes while taking advantage of a versatile inventory of models. In true Chevy fashion, you have plenty of options to choose from to elevate the feeling of the ride and do your part to help our planet, and when it comes to quality, integrity, and dependability, no brand is as highly regarded as Chevrolet.