EV and PHEV Federal Tax Credit
What is It?
- Federal tax credit is offered for EV or PHEV acquisition
- Federal tax credit is separate from state or other rebates, such as the California Clean Vehicle Program (CVRP) $1,500 PHEV rebate or $2,500 EV rebate (visit https://cleanvehiclerebate.org/eng for more information on CVRP)
How Much Is The Federal Tax Credit?
Internal Revenue Code Section 30D provides a credit for Qualified Plug-in Electric Drive Motor Vehicles including passenger vehicles and light trucks.
For vehicles acquired after December 31, 2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity,
$417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500.
2018 Outlander PHEV $5,836
How It Works
If vehicle is leased:
- If the vehicle is leased through Mitsubishi Motor Credit, tax credit is automatically rolled into the customer's monthly payment
- Monthly lease payment reflects the tax credit
- No further work needed by customer or dealer
- If the vehicle is not leased through Mitsubishi Motor, dealer should contact its respective financial institution about how this tax credit is processed
If vehicle is purchased:
- Customer must directly apply for the tax credit from the IRS
- IRS form 8936 is below
Download The Form