The Federal Recovery and Reinvestment Act of 2009 provided stimulus money designed to give plug-in and electric car buyers between $2,500 and $7,500 in federal income tax credits. The larger the battery, the higher the credit. Buyers can get a $2,000 credit for exchanging a hybrid for a plug-in. And many states and municipalities offer Additionally, most EVs and plug-in hybrids would qualify only for the base $7,500 tax credit—same as available today—because the measure reserves the first $2,500 bump, to $10,000, for Entry-Level EVs: 7 Plug-In Hybrid Electric Vehicles You Can Buy for Under $40,000; Georgia, as domestic assembly is one of several requirements to qualify for the tax credit. Kia's first two The Department of Energy released a list of new all-electric and plug-in hybrids that qualify for tax credits. Only a handful of vehicles are now eligible, provided that buyers also meet There are, however, some government incentives that can help offset the higher purchase price of an EV. For instance, the Federal government in the United States gives you tax credit when you purchase a plug-in hybrid or all-electric car. You can take up to $7,500 off the cost of the vehicle just from this one EV tax credit alone. Effective 7/1/23 – 6/30/27, Maryland is offering an excise tax credit on a qualifying zero-emission plug-in electric or fuel cell electric vehicle regardless of whether you own or lease the vehicle. Business entities may also qualify for the tax credit on up to ten vehicles. Only cars under $55,000 or SUVs, vans, and pick­up trucks under $80,000 are eli­gi­ble for the credit. Updat­ed Feb­ru­ary 6, 2023 — IRS has updat­ed the clas­si­fi­ca­tion of these EVs and raised the MSRP cap from $55,000 to $80,000: Audi Q5 PHEV, Cadil­lac Lyric, Ford Escape Plug In Hybrid, Ford Mus­tang Mach‑E, Lin­coln Cor­sair Plug In Hybrid, Tes­la Mod­el Y (all vari pCvBXk.