Thinking about leasing an EV or plug-in hybrid vehicle? Thanks to the clean vehicle tax credit loophole, it’s a little easier- and potentially cheaper.

Some things you need to know:

🤔 The Basics: 

💰 The Clean Vehicle tax credit provides up to $7,500 for eligible clean vehicles. This includes both purchased and leased vehicles!
🙋🏻‍♂️ For leased vehicles, the credit goes to the lessor (the owner of the car) , not the lessee (the driver).
🤝 This means you won’t directly receive the tax credit, but the lessor can choose to pass on the savings to you in the form of a lower lease payment or upfront discount.

➕Benefits:

⬇️ Potentially lower monthly payments: If the lessor passes on the savings, your lease payments can be significantly lower, making clean vehicles more affordable.
💵 No income limits: Unlike the credit for purchased vehicles, there are no income limits for leased vehicles. This means everyone can potentially qualify for the tax credit benefits through leasing.
🚗 Wider selection of vehicles: With the “loophole” classifying leased clean vehicles as “commercial vehicles,” you have access to a broader range of cars that qualify for the full credit.
😎 Other leasing benefits: Leasing offers additional advantages like typically lower down payments, warranty coverage, and the flexibility to switch to a newer car after the lease term.

🤔 Consider this:

❌ Not all lessors pass on the savings: Some may choose to keep the tax credit for themselves. Make sure to ask about this when negotiating your lease and ensure the terms are clearly outlined in the agreement .
🛑 Mileage limitations: Leases typically have mileage limitations. Understand these limits before signing and ensure your driving habits align with the restrictions.
🆚 Lease vs. purchase: Leasing may not be the best option for everyone. Consider your individual needs, driving habits, and financial situation before making a decision.

👉 Remember: Always consult a qualified dealer and the IRS website: https://www.irs.gov/clean-vehicle-tax-credits.

Go electric ✌️