October 13

Tax Incentives For Hybrid Owners

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Texans who buy an electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV) not only save on fuel but can also take advantage of tax credits and other incentives, tax credits, and discounts from utility companies and insurers. You may even be eligible for a $2,500 rebate program. The team at Huffines Chevrolet Lewisville wants you to know about potential tax incentives for hybrid owners.

Texas Emissions Reduction Program Rebate

You may qualify for a $2,500 rebate for a purchased or leased EV or PHEV. The Texas Emissions Reduction Program (TERP) provides the rebate for eligible vehicles purchased or leased after September 1, 2021, with a maximum of 2,000 rebates available until January 7, 2023. The program, which can be applied for retroactively after a purchase or lease, could use up its funds before the expiration date.

Available only through Texas dealerships, applying for the TERP rebate is a three-step process:

  • Complete Form 2: This form needs to be signed by a dealership representative, a step that should be taken when you purchase or lease your EV or PHEV.
  • Provide the vehicle title: If you are applying retroactively, or a dealership-provided copy of the Application for Texas Title and Registration for those currently purchasing or leasing the vehicle.
  • Provide proof of purchase or lease: Share documentation of the purchase or lease, such as a financing contract, lease, or check for those who pay cash.

Check out the TERP website for details, such as a list of eligible vehicles and application forms.

Federal Incentives

Buyers of EVs and PHEVs could qualify for tax credits of up to $7,500 from the U.S. Department of Energy . Designed for new vehicle purchases and excluding leases, the federal tax incentive reduces your income tax bill. Tax credits are a direct way to reduce taxes, unlike deductions, which reduce your taxable income amount and have less impact on your tax bill.

Note that the recently passed Inflation Reduction Act of 2022 changed credit amounts and requirements for clean energy vehicles. Terms changed for purchases after August 16, 2022, to include a new requirement for final assembly in North America. Details are still being worked out, so check for updates and confirmation of which vehicles qualify before applying to this program.

State Incentives

Texas laws and incentives promote EV and PHEV vehicles along with alternative fuel options such as compressed natural gas, propane, and biofuel. They include incentives such as the TERP program and promote other programs, such as utility discounts and private incentives from businesses. Texas is also planning for infrastructure to support EV and PHEV usage.

Utility Incentives

Electricity providers across Texas are offering special programs for defraying the cost of installing EV charging stations in homes, multi-unit dwellings, workplaces, and businesses. Special discounted rates for off-peak charging of EVs overnight keep the cost of operating EVs and PHEVs down. Texas utilities are working with the National Electric Highway Coalition to create a nationwide network of fast charging stations. Check with your electric provider to see which EV incentives are offered in your neighborhood.

Insurance Incentives

While EVs and PHEVs are more costly due to replacement costs of the specialized components, they incur less regular maintenance costs over the years. Additionally, insurance companies may offer discounts to offset the higher premiums, which may be 15% more. With the increase of EVs on the road, the insurance marketplace for efficient vehicles will become more competitive.

Learn More About EVs and PHEVs

New technology for EVs and PHEVs is constantly evolving. Keep up with the new features, incentives, and operating information by entering your Zip code on the  Plug In America website . You can compare and contrast EV and PHEV vehicles, learn more about how they operate, and find charging information for road trips. The Texas Department of Transportation website has a section on how charging works, best practices for optimizing battery life, and where to charge, whether at home, at work, running errands, or traveling long distances.

Kinds of Electric Vehicles

While regular hybrid vehicles charge their batteries through driving and braking, EVs and PHEVs must be plugged in to maintain their batteries. EVs run only on electricity and must be charged regularly. Instead of a gas gauge, they have power indicators that specify the remaining range. EVs may be charged on the run, adding power in a short amount of time.

PHEVs use gas and electricity in tandem, with powerful batteries able to handle ranges of over 40 miles without employing the gas engine. PHEV batteries must be charged since they can’t regain power through driving like traditional hybrids.  Charging for both types of vehicles can be done through regular 120-volt home outlets, but specialty charging stations that use 240 volts are faster and more efficient. High-powered charging stations may be installed at home, but they are also readily available at public locations like parking garages, malls, airports, and offices.

Optimizing your EV or PHEV

You can make the most of your EV or PHEV by finding the best way to charge and operate it that meets your family’s needs. Follow a few guidelines to incorporate an EV or PHEV into your life.

Charging

Find the best way to keep your battery charged and ready to go. Charging can be done in one of three ways:

  • Level 1 uses a standard outlet with a cable included with the car, providing slower charging rates of about three to five miles an hour. Level 1 is helpful for drivers who travel under 40 miles a day.
  • Level 2 uses a standard outlet connected to a charging station and charges at a medium rate of 15 to 30 miles per hour, which is useful for those who travel 100 miles or more daily.
  • DC Fast Charging provides charging rates of 150 to 400 miles in an hour and requires a specialized high-voltage setup.

Off-peak charging, commonly scheduled from 10 p.m. to 6 a.m., can save money. As with gas levels in traditional cars, it’s best to keep away from low battery levels. Operating levels from 20% to 80% will you where you need to go. Charging to 100% provides the longest range but is largely unnecessary.

Check out the EV and PHEV offerings at Huffines Chevrolet when you’re ready to go electric.  You can find us at 1400 S. Stemmond Fairway in Lewisville, give us a call at 972-538-7000, or contact us via our secure online form to get started. Our sales team is available from 8:30 a.m. to 8 p.m. Monday through Saturday for your convenience.


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