Electric Vehicle Tax Exemption

Thinking of buying a new all-electric vehicle (EV)? These vehicles are cleaner, better for the environment, offer cutting-edge technology, and require less maintenance than gas cars. 

You can get the Drive Clean Rebate of up to $2,000 for new EV purchases or leases. Combine that with an Inflation Reduction Act tax credit of $7,500 for an opportunity you won't want to miss.
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WHAT IS THE NY EV TAX EXEMPTION?

If you are a New York State resident or business looking for a new car, now is a great time to buy or lease a plug-in hybrid or battery-powered car. 

Plus, New York State Assembly Bill 2021-A4761B provides an exemption on the sale of the first $35,000 for a battery electric or plug-in hybrid vehicle from state sales and compensating use taxes; authorizes local governments to elect such incentives. 

What You Get Instead of a New York Electric Vehicle Tax Credit

So, what if you are a New York resident and you want to get an EV for a more affordable commute? The state government grants a much more immediate reward than an NYS EV tax credit. In lieu of New York State EV tax incentives, drivers who buy an electric vehicle will get an instant rebate at time of sale of up to $2,000 via the Drive Clean Rebate program. That means you won't have to wait until tax time to reap the rewards of buying an electric vehicle. Here's how it works:

The Drive Clean Rebate Amount by Electric Range
• Greater than 200 miles - $2,000 off
• 40 to 199 miles - $1,000 off
• Less than 40 miles - $500 off
• Electric cars with MSRP higher than $42,000 - $500 off

What About the Federal Tax Credit?

There may not be a New York plug-in hybrid tax incentive, but the federal government offers a tax credit ranging from $2,500 to $7,500, depending on the car's battery capacity and GVWR. Once you find out how much your car is eligible for, fill out the appropriate tax form and deduct that amount from the taxes you owe. 

How to Claim Your Electric Car Tax Credit
• Calculate how much you owe in taxes.
• Check how much in tax credits your vehicle is eligible for.
• Deduct that amount from the taxes you owe (tax form 8936).
Want to learn more about EV incentives and savings? Are you read to buy or lease a new Lexus EV model?
Let Lexus of Orange County help. Contact us today at 833-822-2216.
*Must meet income and vehicle qualification requirements.

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    3496 Route 6
    Middletown, NY 10940

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