From CNBC: 2024-07-18 10:30:14

Consumers can access a $7,500 federal EV tax credit by leasing a new electric vehicle under the Inflation Reduction Act signed by President Joe Biden. The credit is easier to get for lessees than buyers since it doesn’t have strict requirements. This has led to increased leasing uptake in 2024.

The full tax credit for new clean vehicles comes with conditions, such as assembly in North America and certain price limits. Not all EVs qualify, with some being eligible for only half the credit. Thirteen manufacturers currently make models eligible for the tax break, with more expected to qualify over time.

Dealers are not required to pass on the $7,500 tax credit savings to lessees, but many are doing so to boost EV demand. Leasing promotions with subsidized monthly payments have become more common in 2024, especially among foreign automakers. Considerations like tax breaks and resale value should be evaluated when deciding between leasing and buying an EV.

Consumers should thoroughly review lease contracts to ensure that the tax credit is reflected in the pricing. If unsure, it’s crucial to ask the dealer upfront and ensure clarity in the lease documents. Leasing offers financial and nonfinancial benefits, like trying out EVs without a long-term commitment. Make an informed decision based on individual financial situation and preferences.

Read more: ‘Loophole’ may get you a $7,500 tax credit for leasing an EV