Is This the Time to Go Electric and Claim a Tax Credit? What to Know Now

The EV window is closing. The opportunity to get “free money” in the form of an EV tax credit for taking delivery of a purchased or leased EV vehicle goes away on September 30th. So if you’re thinking of joining the millions of Californians who’ve already taken the plunge, the time is now. 

Going electric, with or without tax credits, may be an attractive option:

• Overall, long-term savings. The upfront cost of an electric vehicle may be a little higher (one of the main reasons for the tax credits), but lower maintenance and fuel costs over the long term make driving an EV fiscally prudent.
• Lower your carbon footprint. 
• No more range anxiety. EV range is often about the same as the range for a gas-powered vehicle. 

How much are we talking about? New EVs could qualify for up to a $7,500 tax credit; used EVs could grab up to $4,000. But, as with most anything having to do with taxes, it’s complicated. Not all EVs or potential buyers/lessors qualify under federal rules, but Audi is sweetening things by offering its own lease incentives, equal to the federal tax credit. 

Here’s what we know about EV tax credits

• Most Audi EVs don’t qualify for the tax credit on purchases because they are either assembled outside of the U.S. or have non-American components. But...
• Leasing rules are less restrictive, especially when it comes to battery sourcing. When you lease an Audi EV, the tax credit comes to the dealer – Audi Napa Valley – and then it’s passed along to you. Your Audi Napa Valley client advisor can provide important information. 
• Income limits may apply: $300,000 for joint filers, $225,000 for heads of households and $150,000 for others.
• There are caps on costs: $55,000 for passenger cars; $80,000 for SUVs/vans/pickups; $25,000 for used vehicles.

Here is the list of Audis that qualify for Audi’s 2025 EV Lease Bonus:

• A6 Sportback e-tron 55 and e-tron 60
• Q4 e-tron 45, e-tron 55 and Sportback e-tron 55
• Q5 55 PHEV
• Q6 e-tron 50 and e-tron 60
• S e-tron GT

Consider Used EVs

Many used Audi EVs and PHEVs are eligible for up to $4,000 federal tax credits. Your Audi Napa Valley client advisor can help you sort through the options, but these are good possibilities:

• A3 e-tron (2016-18) and e-tron ultra (2016)
• A7 TFSI e Quattro (2021-22)
• A8 L 55 TFSI e Quattro (2021), 60 TFSI e Quattro (2021)
• A8L PHEV (2020)
• E-tron (2019, 2021-23), e-tron Sportback (2020-23)
• Q5 PHEV (2020), Q5 TFSI e Quattro (2021-23)

There’s a lot to sort through on the subject of EV tax credits and we’re always here to help. We want to assist with any opportunity to help our customers get the tax relief that they’re entitled to, while making this exciting transition to an electric Audi.