If you're curious about green cars, you may have heard that some qualify you for an EV tax credit. How this credit works can vary depending on which vehicle you buy though, so let the experts here at Fields Volvo Cars Northfield clear some things up for you.
National Tax Incentives
One of the biggest incentives for buying a green car is the national tax incentive. This gives drivers a tax credit of up to $7,500 when you buy a new green car. Tax credits need to be used up completely within the same year that you purchased the vehicle though, so that $7,500 credit cannot roll over and help you pay tax bills in multiple years unfortunately.
How much you get depends on the type of vehicle you choose. If you get a fully electric model like the 2022 Volvo C40 Recharge Pure Electric or the 2022 Volvo XC40 Recharge, you can get that $7,500 credit. If you purchase a plug-in hybrid model like the 2022 Volvo XC60 Recharge or the 2022 Volvo XC90 Recharge, the credit is slightly smaller. Expect to secure a credit of $5,419.
Illinois Incentives
Illinois is also one of the states that offers its own incentives to green car buyers. A recently passed law allows drivers to collect a $4,000 rebate when they buy a new EV. The incentive goes into effect this July and eventually will get phased out as lesser rebates are offered, so this year is a great time to find a new green car.
So, if you're ready to upgrade to an eco-friendly vehicle, visit our Volvo dealership near Chicago. We'll help you find a new model that offers a premium driving experience while helping you lower your carbon footprint. Take a test-drive today!