All About MAZDA PHEV and EV Tax Credits

One of the big incentives for purchasing an electric vehicle (EV), such as a Mazda PHEV, is the benefits of getting tax credits. Government tax incentives make the purchase of an EV a good option for many car buyers next year. But understanding these deals will help EV buyers stay informed and know what to expect when they buy — read on to learn more.

What Is an EV Tax Credit?

When you get an EV tax credit on a purchase, such as the one you may get on an Mazda EV for sale at El Dorado Mazda, it is a nonrefundable tax credit offered to taxpayers who buy qualifying EVs or plug-in hybrid electric vehicles (PHEV). What this means is that the credit will reduce your tax bill, but it won’t be given as a cash refund.

Under current tax credit laws, a maximum credit of $7,500 is available for the purchase of a new EV and a maximum credit of $4,000 is available for the purchase of a used EV.

Which EVs Qualify for a Tax Credit?

Not all EVs and Mazda hybrid vehicles qualify for tax credits or qualify for the full amount of tax credit. Check for a list of qualifying EVs from government websites or ask a dealer which EVs qualify when browsing for a new EV at a dealership.

It’s important to note that only new EVs that sell with a MSRP of less than $80,000 can qualify for any EV tax credits. Tax law also includes income limits that determine if each individual taxpayer can qualify for tax credits on their purchase.

How To Claim an EV Tax Credit

When you purchase a qualifying EV from a car dealership, you can claim your EV tax credit by filing Form 8936 when filing yearly federal income taxes. You will need specific information about your EV when filing this form, so at the time of purchase be sure to ask for the report that contains this information needed for the tax form.

Also, don’t forget that local and state tax rebates are available for residents of specific states and regions. Check with local or state agencies to see if your EV purchase is eligible.

Browse New MAZDA PHEV and EV Options at El Dorado MAZDA

If you want to browse the latest Mazda EV and PHEV models, visit us at El Dorado Mazda. Besides a wide selection of great Mazda models, you can discover great Mazda EV deals with a visit to our McKinney, TX dealership. Drop by today, give us a call, or chat online to discover new models, options, and specials.