Federal Tax credit and leasing

[NicolausCOPERNICUS]

So who gets the benefit? I'm a bit confused about the federal tax credit for electric vehicles. I know I'm not eligible, but I've noticed that when leasing a car, the credit is not taken off the MSRP. I'm wondering who's actually getting the credit - the dealer or the finance company? I've tried asking, but I haven't been able to get a clear answer. I've also noticed that other brands like VW and Nissan are taking the credit off the MSRP for leased ID4s. Can anyone shed some light on this? I've been a loyal Hyundai customer for over 20 years, but I might reconsider if I'm missing out on the tax credit.

 

[Nyoy_]

It's a tax credit that directly lowers your total federal tax liability. Unlike a tax deduction, it is not calculated as a percentage of your total income.

Any unused portion cannot be carried forward to the following tax year.

 

[MaskonZed10]

So who gets the benefit? I'm a bit confused about the federal tax credit for electric vehicles. I know I'm not eligible, but I've noticed that when leasing a car, the credit is not taken off the MSRP. I'm wondering who's actually getting the credit - the dealer or the finance company? I've tried asking, but I haven't been able to get a clear answer. I've also noticed that other brands like VW and Nissan are taking the credit off the MSRP for leased ID4s. Can anyone shed some light on this? I've been a loyal Hyundai customer for over 20 years, but I might reconsider if I'm missing out on the tax credit.

There is always confusion around the federal tax credit for electric vehicles (EVs).

So, technically, if you lease an EV, you are not the owner of it. The leasing company is the owner of it. In this case, the company is eligible to claim the federal tax credit. But I read that sometimes can depend on the brand and the dealership.