EV Tax Credit Q&A

By driving an electric vehicle, you can greatly reduce your carbon footprint, which helps to protect our planet. It helps so much so, in fact, that buyers are being offered an EV tax credit to help persuade you to make the electric switch. We're addressing our frequently asked questions at Gillman Honda San Benito to give you an inside look.

 

Why is There an EV Tax Credit?

The Inflation Reduction Act of 2024 (IRA) was proposed to address the climate crisis we are facing. It is designed to help lower household energy costs, reduce gas emissions, and more. With this act, electric vehicle (EV) buyers will be rewarded with a tax credit to help incentivize more buyers to become EV drivers.

How Has it Changed?

Effective as of January 1, 2024, when shopping for Honda EVs, you can transfer your Electric Vehicle tax credit to the dealership. Then, it can be collected as cash or used as a down payment on your purchase. This way, you don't have to wait to file it on your next tax return, you'll get it immediately.

How Much is it?

If you meet the qualifications, the tax credit for a new Honda Prologue purchase is up to $7,500. Your credit amount will depend on your vehicle meeting the critical minerals sourcing and battery component sourcing requirements.

What are the Restrictions?

Only vehicles purchased under the consumer clean vehicle credits are eligible for this tax credit. You must be purchasing the vehicle for your own use and not for resale, and it must be used primarily in the United States. There are also income restrictions for you, as well as MSRP restrictions for your purchase.

Do Pre-Owned Vehicles Qualify?

For a pre-owned vehicle, such as the Honda Clarity PHEV, the credit is up to $4,000 (or a maximum of 30 percent of the selling price). To qualify for the tax credit, you can't have claimed another used clean vehicle credit in the past three years.

Explore Our Honda EVs in San Benito, TX

We have an extensive selection of electric vehicles at our Honda dealership in San Benito, TX. We'd be happy to help you find the perfect vehicle for you and you can conveniently apply for Honda financing with our team as well. Stop in to upgrade to a new Honda EV today!