How else can you save on an electric vehicle (EV) purchase? We’ve compiled a few helpful links to help you further reduce the cost of purchasing and operating your new EV.
Federal Tax Credit
Up to $7,500
Battery and plug-in hybrid electric vehicles purchased new in 2023, or after, may be eligible for an income-based tax credit up to $7,500 from the federal government. Tax credit eligibility depends on multiple factors such as:
- Vehicle MSRP
- Final assembly location
- Battery component and/or critical minerals sourcing
- Your modified adjusted gross income (MAGI)
Visit fueleconomy.gov to check out the breakdown of tax credit amounts.
As of January 1, 2024, the federal income tax credit must be initiated and approved at the time of sale. Dealers are required to provide certain information to vehicle buyers and must submit a time of sale report to the IRS. Read IRS publication 5900 to learn more.
If you lease your EV, the tax credit goes to the leasing entity. However, dealerships often factor the tax credit into the cost of the lease, lowering your down payment or monthly payments. Ask your sales representative how your tax credit will be applied.
Please note, Charge Up New Jersey is not a tax credit program but a separate EV incentive program. For eligibility requirements and applicable deadlines, please see the eligibility guidelines.