A Breakdown of the Electric Vehicle Tax Credit

 

More and more, automakers are making the switch to electric platforms as drivers become increasingly eco-conscious. We're proud to tell you that Jaguar is modernizing along with the rest. Luxurious electric vehicles like the Jaguar I-PACE are sure to shrink the size of your carbon footprint.

If you're ready to limit your impact on the environment in a stylish automobile, check out our Jaguar I-PACE incentives now!

What Is the EV Tax Credit?

When you contact our Indiana Jaguar dealership, we'll explain that the electric vehicle tax credit is kind of a reward for people who purchase all-electric automobiles like the 2021 Jaguar I-PACE. Owners of select EVs can use the tax credit or a portion of it to reduce their taxable income on their federal tax return for the year in which they bought their electric cars.

Unlike capital losses, no part of the EV tax credit can be carried forward, so you must exhaust the permissible amount on a single tax return. If your taxable income is less than the allowable credit, you can only use the credit up to the amount of your reported income.

How Much is the Credit?

If you're looking for new cars in Indianapolis, IN or a nearby area, we invite you to visit our location to check out the luxury models on our lot. When you arrive at our Jaguar dealership, the Jaguar I-PACE will stand out with its all-electric drivetrain.

Given the size of its electric battery, the 2021 Jaguar I-PACE qualifies for the maximum $7,500 EV tax credit. Vehicles with smaller batteries aren't necessarily as lucky. 

The base EV tax credit is $2,500. If a car's battery has at least five kWh of capacity, another $417 is added to the credit. From there, an additional $417 is added to the credit for every extra kWh of battery capacity, up to a maximum possible credit of $7,500.

To learn more about how the tax credit is calculated, contact or visit our Jaguar finance center near Greenwood, IN.

Are Lessees Eligible for the EV Tax Credit?

While signing a Jaguar lease for the Jaguar I-PACE is good for the environment, it won't help when it comes to your federal taxes. Since the dealership will still own your leased car, the dealership will be eligible for the EV tax credit instead of you.

Now that you know all about the EV tax credit, it's time to shop for a new luxury car. Shop with us online or visit Jaguar Indianapolis today!