Tax Benefits for New MAZDA EVs

Tax benefits can make investing in new Mazda EVs an even more exciting option. While these hybrids don’t qualify for the federal EV tax credit, there are other ways to save with your new car purchase, especially if you own a business. Take advantage of these benefits for your next EV purchase at El Dorado Mazda.

Are Any MAZDA EVs Eligible for the Clean Energy Credit?

Unfortunately, no Mazda hybrid vehicles qualify for the federal tax credit for EVs and PHEVs. Because of the limitations on where vehicles need to be manufactured to qualify for the credit, it is unlikely any Mazda vehicles will be added to the list. However, there are other ways to save with your new Mazda PHEV.

Can I Qualify for Any Tax Deductions for My MAZDA Car?

You may be able to deduct the cost of the sales tax on a new car purchase from your taxes. This only covers the local and state sales tax, however, and only up to $10,000. Here in Texas, that means you can deduct the 6.25-percent state sales tax.

In addition, you have to choose between deducting sales tax and deducting income tax, so it only makes financial sense if you spent more on sales tax than on income taxes over the course of the year.

Can I Deduct Anything for My Business?

If you are a business owner or are self-employed, you may be able to deduct expenses from your taxes for the first year. This is known as a Section 179 deduction and can cover up to the entire cost of the car, but it is dependent on what percentage of the car’s use is for business purposes. That means if you drive the car for personal use 50 percent of the time, you can only deduct up to 50 percent of the cost.

Test-Drive a New MAZDA PHEV in McKinney, TX

New Mazda EVs may not qualify for tax credits, but they’re still a great way to switch to hybrid performance. Come explore our lineup in person at our McKinney, TX Mazda dealership. Find the next great car for your business, then take a test drive today!