Does the EV tax credit apply for hybrid vehicles or just fully electric cars?

So if I have a regular Toyota Prius (not the plug-in version), I don't qualify, right? Also, do you know if there's a list somewhere that shows exactly which hybrids qualify and for how much? The dealer I talked to was super vague about it.

Correct, a regular Toyota Prius (non-plug-in) would not qualify for the federal tax credit as it doesn't plug in to charge. Only plug-in hybrids with at least 7 kWh battery capacity potentially qualify. The IRS maintains an updated list of qualifying vehicles on their website. You can search for "IRS qualified clean vehicles" to find it. The list shows which vehicles qualify and the amount of credit available for each. I'd recommend checking this list before visiting the dealer as some salespeople aren't always up-to-date on the specifics. The credit amount varies because it now depends on battery component sourcing and critical mineral requirements.

Does this site also tell you how to claim the credit? Like do I need to wait until I file my taxes next year or can I get it right away somehow? I heard something about getting it at the point of sale now?

I'm a bit skeptical about random tax tools. How accurate is this compared to just checking the IRS website directly? Not trying to be rude, just cautious about tax advice from third-party sites.

Yes, the site does explain the different ways to claim the credit! For 2025 purchases, you can either claim it when you file your taxes OR transfer the credit to the dealer for an immediate discount at the point of sale, which is super convenient. They have a whole section that walks you through both options. As for accuracy, I totally understand being cautious. What I like is that they source everything directly from the IRS guidelines and update whenever there are changes. They also provide links to the official IRS pages for verification. I cross-checked everything with my accountant before making my purchase, and he confirmed it was all correct.

Wait, how does this service work exactly? I tried calling the IRS twice last week and gave up after being on hold for over an hour both times. Does this actually get you through to a real person?

This sounds like a scam tbh. Why would you need a special service to call the IRS? You're probably just talking to the same call center but paying extra for nothing.

The service works by basically waiting on hold with the IRS for you. You register your phone number, and when they finally reach an agent, the system calls you to connect you directly with the IRS person. No more sitting on hold for hours. I definitely understand the skepticism - I felt the same way at first. But it's not connecting you to a different call center or anything like that. It's literally just handling the wait time for you, and then you're speaking directly with the actual IRS. The same people you'd talk to if you'd waited on hold yourself. I was able to get official confirmation about my specific vehicle model and the exact credit amount, which the dealer had wrong.

Do you know if leasing makes any difference for claiming the credit? I'm thinking about leasing a Hyundai PHEV but not sure if the rules are different.

Leasing does make a significant difference! When you lease, the tax credit actually goes to the leasing company (since they're the legal owner of the vehicle), not to you as the lessee. However, many leasing companies will pass the savings on to you in the form of a reduced lease payment. The benefit of leasing is that the commercial clean vehicle credit doesn't have the same strict battery and mineral sourcing requirements that the individual credit has. So some vehicles that only qualify for partial credit ($3,750) for buyers might effectively give you the full benefit when leased. Just make sure to ask the dealer specifically how much of the tax credit is being passed through to your lease terms.

Yes, there is a separate credit for used clean vehicles! It's up to 30% of the sale price or $4,000, whichever is less. To qualify: - The vehicle must be at least 2 years old - Price must be $25,000 or less - It must be the first transfer of the used vehicle since August 16, 2022 - You must buy from a dealer (not private party) - There are income limits ($75,000 for single filers, $112,500 for head of household, $150,000 for joint) - You can only claim this credit once every 3 years A 2022 Bolt would qualify if the price is under $25,000, but double-check all the other requirements too!

This is such a great summary! I'm actually in the exact same boat - was looking at regular hybrids but now realize I need to focus on plug-ins if I want the tax credit. One thing I'm still curious about though - do you know if there are any state incentives that stack on top of the federal credit? I'm in California and wondering if I could potentially get even more savings beyond the federal $3,750-$7,500. Thanks for pulling all this info together in one place!