Whether you’re buying an electric vehicle (EV) or an electric utility vehicle (EUV) for the first time or are a returning customer, the EV tax credit can help you save money on your purchase. You could save thousands of dollars on the EV’s price tag thanks to a credit applied to your tax return during the year you take delivery of the car.
There are several rules you should be aware of for the tax credit, especially since the provisions were updated in the Inflation Reduction Act of 2022. Our EV experts here at Huffines Chevrolet in Lewisville, Texas, have outlined some of the key points you need to know.
What Is the EV Tax Credit?
The EV tax credit, also known as the clean vehicle credit, is a discount available to those who buy EVs. It’s worth up to $7,500 and is deducted from your tax return for the year you purchase the vehicle. As of 2024, you’ll also get the option to apply the tax credit to the purchase price of an EV at a dealership. This process will work by transferring the tax credit to the dealership so they can reduce the purchase price by the corresponding amount.
The tax credit has been in place for several years with the aim of encouraging EV purchases. When EVs first hit showrooms, they tended to be considerably more expensive than standard gas-powered cars. In the intervening years, EV prices have dropped significantly. However, the tax credit can still make all the difference for many buyers when it comes to deciding whether an EV is an affordable option.
Under the original system, EVs were eligible for the full tax credit if they were made by manufacturers that had sold less than 200,000 EVs. The Inflation Reduction Act altered this rule and instead introduced requirements for EV manufacturing to qualify.
The initial stage of the new rules requires 40% of the battery’s minerals and 50% of the battery’s components to be manufactured or assembled in North America for the vehicle to qualify for the $7,500 credit. The total amount consists of two separate credits worth $3,750 each. One relates to the battery’s minerals while the other covers its components. Vehicles can qualify for none, one, or both of the credits depending on the automaker’s manufacturing practices.
Do Chevrolet EVs Qualify for the Tax Credit?
Chevrolet’s EVs are eligible for the tax credit. This includes the Chevrolet Bolt EV and the Bolt EUV, which is designed more like a crossover. Chevrolet benefited from the revisions made by the Inflation Reduction Act since its EVs were not eligible under the old rules because GM had sold more than 200,000 EVs.
It’s worth keeping in mind that GM has big plans to roll out a significantly larger number of EVs in the coming years. By 2025, the manufacturer aims to have EVs available in a third of its vehicle segments. As a result, you’ll have many more options that may be eligible for the tax credit, although we won’t know this for sure until they’re released.
If you’re unsure whether a Chevrolet EV qualifies for the tax credit, you can scan the QR code found on the top right-hand corner of the vehicle’s window. Alternatively, GM has an online tool where you can enter the vehicle identification number to confirm whether it qualifies.
Chevrolet EV Overview
The two Chevrolet EVs already in showrooms are the Bolt EUV and Bolt EV. For the 2024 model year, we’re expecting several additions to this lineup. These will include the Chevrolet Equinox EV, a larger crossover than the Bolt EUV, and the Silverado EV. The latter will be Chevrolet’s first all-electric pickup.
The Bolt EUV is powered by a 65 kWh lithium-ion battery and a single motor that puts out 200 horsepower. This setup provides enough power to take the Bolt EUV from zero to 60 mph in 7 seconds. It has a driving range of 247 miles on a full charge. The battery takes between seven and 10 hours to fully charge on a Level 2 charger. With a DC fast charger, you can add 95 miles of driving range in just 30 minutes.
Inside the cabin, you’ll find 16.3 cubic feet of storage space behind the second row of seats, which opens up to 56.9 cubic feet with the rear row down. The infotainment system consists of a 10.25-inch touch screen and a six-speaker stereo. You’ll also find a Wi-Fi hotspot, wireless Android Auto and Apple CarPlay, and wireless device charging as standard features. You can add a navigation system and a premium seven-speaker stereo for a more high-performance setup.
The Bolt EV has the same powertrain setup as the EUV, churning out 200 horsepower. It gets a slightly better driving range at 259 miles on a full charge. You can fully charge the battery on a Level 2 charger in seven hours or add about 100 miles of driving range in 30 minutes with a DC fast charger.
Inside the cabin, the dimensions are almost identical to the Bolt EUV. There’s 16.6 cubic feet behind the second row and 57 cubic feet with the rear seats down. The infotainment system also contains most of the same features.
Both EVs have several trim options, allowing you to configure your EV as you like. You can add more upscale features in the cabin to create a comfortable ride or add additional driver safety features to make your job easier behind the wheel.
Purchase an EV at Huffines Chevrolet Lewisville
Are you ready to take advantage of the EV tax credit and purchase a new all-electric Chevrolet? You can explore the Chevrolet EVs available in our showroom and arrange a test drive around Lewisville or in the Dallas area so you can get a feel for how the vehicle performs on the road. If you have any questions about owning an EV or any specific models, don’t hesitate to contact our experts at Huffines Chevrolet Lewisville. Alternatively, check out our online inventory from the comfort of your own home, and access competitive financing with our online application form.