Receive a Federal Tax Credit Up To $7,500!
All-electric and plug-in hybrid Kia's purchased may be eligible for a federal income tax credit of up to $7,500. The credit amount will vary based on the capacity of the battery used to power the vehicle. State and/or local incentives may also apply.
|Kia Niro Plug-in Hybrid||PHEV||$4,543|
|Kia Optima Plug-in Hybrid||PHEV||$4,919|
|Kia Soul EV||EV||$7,500|
To be certified for the credit by the manufacturer, the vehicle must meet the following requirements:
The following requirements must also be met for a certified vehicle to qualify:
Fill out Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit.
For vehicles purchased in 2010 or later, this credit can be used toward the alternative minimum tax (AMT).
If the qualifying vehicle is purchased for business use, the credit for the business use of an electric vehicle is reported on Form 3800, General Business Credit.
Q: What's the difference between a deduction and a credit?
A: A tax deduction reduces the amount of income for which you are taxed. For example, if your taxable income were $50,000, a $2,000 deduction would reduce it to $48,000. So, you would pay taxes on an income of $48,000 instead of $50,000. This means your actual savings would be a fraction of the $2,000 deduction.
A tax credit reduces the total amount of income tax you owe. So, if you owed $10,000 in federal income tax, a $2,000 credit would reduce the amount you owed to $8,000. With a credit, your actual savings would be $2,000.
Q: Where can I find information on State incentives?
A: The U.S. Department of Energy's (DOE's) Alternative Fuels Data Center (AFDC) maintains a list of State & Federal Incentives.
Q: Can I claim the credit for a used vehicle?
A: No. The credit applies to new vehicles only.
Q: Can I claim the credit for a leased vehicle?
A: If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.
**This information comes from the Internal Revenue Service (IRS) and is not from Greenway Kia West. Information is subject to change. please visit IRS.gov for more information