Is There a Tax Incentive for Lincoln Electric Cars?

As you drive around Medford and Philadelphia, you are sure to see more and more electric vehicles and plug-in hybrid electric vehicles on the roads. Why is this? EVs and PHEVs offer a number of unique benefits that make them an excellent investment. Not only do they lower your carbon footprint on Cherry Hill roads and beyond, but they can also save you money in the long run, as they often cost less to power up than vehicles with an internal combustion engine alone.

What's more? You may also be able to take advantage of an EV tax incentive or plug-in hybrid car tax incentive. Is there a tax incentive for Lincoln electric cars? We dive into the details below.

EV Tax Incentive and Plug-In Hybrid Car Tax Incentive Information 

The Inflation Reduction Act of 2022 amended the Qualified Plug-in Electric Drive Motor Vehicle Credit. A new requirement was added for final assembly in North America that took effect on August 17, 2022. Additional conditions apply for vehicles delivered on or after January 1, 2023. The amount of the credit is based on whether the vehicle meets new critical minerals and battery components requirements for vehicles placed in service after April 17, 2023. Eligible vehicles could qualify for a tax credit of up to $7,500.

In January of 2023, limitations went into effect in regard to the vehicle's MSRP, the buyer's modified adjusted gross income, and the vehicle's battery capacity. Vehicles that meet the critical mineral requirements are eligible for a $3,750 tax credit, and vehicles that meet the battery component requirements are eligible for a $3,750 tax credit. Vehicles that meet both requirements are eligible for a total tax credit of $7,500. For example, the battery capacity must be at least seven kilowatt-hours (kWh).

Additional Limitations of Lincoln EV Tax Incentives 

To qualify, vans, sport utility vehicles, and pickup trucks must not have an MSRP that exceeds $80,000. For all other types of vehicles, the MSRP must not exceed $55,000.

Eligibility may also be limited by thresholds for modified adjusted gross income: 

• $300,000 for joint filers
• $225,000 for head-of-household filers
• $150,000 for all other filers

Contact Holman Lincoln Mount Laurel for More Information

If you have additional questions about the EV tax incentive or plug-in hybrid car tax incentive, do not hesitate to reach out to the team at Holman Lincoln Mount Laurel. We can answer your questions about eligibility and more. You can also start your shopping journey online.