EV Tax Credit FAQ

There are many benefits of buying an electric vehicle. In addition to never spending money on gas, maintenance costs are generally cheaper compared to gas-powered cars. There are other financial benefits as well, as you can take advantage of the EV tax credit. This guide from Gillman Subaru Southwest will help answer questions you may have about it.

What is the EV Tax Credit Worth?

When you buy a new Subaru EV, you will be glad to know that immediately it could help when it's time to file your taxes. This is because the federal government offers a tax credit of up to $7,500 for a new model and up to $4,000 for a used one. To claim the full amount, there are certain criteria that need to be met.

First, the vehicle has to have a battery size of at least 7 kWh and a gross vehicle weight rating of less than 14,000 lbs. In addition, the car and most of the battery components must have been made in North America. Finally, your yearly income can't be more than $150,000.

Does Texas Offer Its Own Tax Credit?

On top of the federal tax credit, many states also offer tax incentives to encourage EV ownership. Texas, however, isn't one of them. The good news is that local utility companies may be able to help you save additional money when it comes to charging.

Are There Any EV Rebates Available?

While programs change often, there are several utilities in Texas that offer rebates for charging stations. For example, Austin Energy provides up to $1,200 for a newly installed Level 2 charging station. You can get up to $250 from Southwestern Electric Power Company and up to $500 from United Cooperative Services. Be sure to check with your energy company for the latest information.

Find the Perfect Subaru EV in Houston, TX

Now that you know there's another reason to purchase an EV, it's time to start shopping. Visit our Subaru dealership in Houston, TX, to check out all of the electric models in stock. If you're ready to buy, you don't have to wait to start the Subaru financing process - just fill out our online application to get pre-approved.