LANSING, Mich. (WLNS) – Demand for electric vehicles is skyrocketing, especially after a new federal law offering a big tax credit. But if you don’t do your research, you could miss out on that tax break.
Under a new federal law, buying a plug-in hybrid or fully electric vehicle could earn you a tax credit of up to $7,500 dollars.
“Those qualifications depend on the car, they depend on the buyer’s income, they depend on where the car’s made, and where even some of the parts are made,” said Keith Barry with Consumer Reports.
Barry says the tax break rules can be confusing.
The federal government put out a list of vehicles that may qualify, including the 2022 Jeep Grand Cherokee plug-in hybrid and the 2022 Ford Mustang Mach-e. But the rules could change before the credit takes effect next year. So if you’re on the fence…
“I’d postpone my buying decisions until I found out whether it actually did qualify or not,” Barry said.
Experts also say the tax break shouldn’t be the only factor if you’re in the market for an EV.