How to get up to $7,500 in federal tax credits
Submitted by Duke Energy
By Vanessa Infanzon illumination Contributor
If you’re like me, you’ve read the headlines about tax credits for an electric vehicle (EV) purchase and wondered if an EV is a fit for your family. Our cars are more than 15 years old, so we know a vehicle purchase is imminent. A tax credit could bring an EV closer to our budget.
The newest tax credits for EVs are part of the federal Inflation Reduction Act. The EV tax credits include up to $7,500 for new vehicles, and up to $4,000 for previously owned.
“These new credits create opportunity for prospective EV buyers, many of whom we anticipate will be first-time EV drivers,” said Dylan Lustig, public policy manager at Duke Energy.
Here’s what you need to know if you’re thinking about buying an EV:
Research your options
How does this benefit me?
Consumers can expect to see up to a $7,500 reduction in their federal tax liability with the purchase of an eligible vehicle. Switching to clean vehicles can potentially help save in other ways, including through lower fuel and operating costs, said Allan Zhao, an engineer in EPRI’s electric transportation program.
Charge up on road trips
Some people are concerned with the availability of charging stations during long road trips, known as “range anxiety.” Duke Energy is working with its states to ease concerns about finding a charger and has programs to help business owners deploy chargers.
“Just like you rely on gas stations along your route to fill up the tank on your gas-powered vehicle, a network of EV chargers will provide access to chargers for EV drivers,” said Logan Kureczka, lead communications manager at Duke Energy. “We are supporting our states’ plans to build out EV charging infrastructure to provide drivers with effective, efficient, and convenient charging options that enable long-distance travel – ensuring drivers are comfortable knowing there will be ample chargers along their route.”
Make the purchase
New vehicles have a maximum credit amount of $7,500. The tax credit is calculated by whether a vehicle meets two domestic manufacturing criteria: $3,750 for battery component requirements and $3,750 for mineral requirements. In addition to these requirements, there are other eligibility restrictions:
Get the tax credit
As part of the credit claim process, the dealership will provide both the consumer and IRS information such as VIN and details of the sale.
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Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America’s largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 50,000 megawatts of energy capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The company employs 27,600 people.
Duke Energy is executing an ambitious clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company has interim carbon emission targets of at least 50% reduction from electric generation by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% from electric generation by 2040. In addition, the company is investing in major electric grid enhancements and energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear.
Duke Energy was named to Fortune’s 2023 “World’s Most Admired Companies” list and Forbes’ “World’s Best Employers” list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos and videos. Duke Energy’s illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.
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