Understand How the Federal EV Tax Credit Can Benefit Your Next Purchase at Showcase Honda
Electric vehicles are more accessible than ever, thanks in part to the federal government’s Clean Vehicle Credit. At Showcase Honda, we want to help you make sense of this opportunity. Buyers of eligible new EVs can receive a tax credit of up to $7,500, reducing the overall cost of your purchase.
This credit isn’t automatic for all vehicles, though. It requires that the vehicle be assembled in North America and meet specific manufacturing and pricing standards. Additionally, the credit applies only if you purchase from a qualified dealer and meet certain income limits.
How Is the $7,500 Federal EV Tax Credit Divided?
The full tax credit of up to $7,500 is split into two equal parts. To qualify for the entire amount, an EV must meet both requirements:
- $3,750 is available if the vehicle’s battery components meet specific sourcing requirements. This ensures critical parts are made or sourced in approved locations.
- $3,750 is available if the critical minerals used in the battery meet strict sourcing guidelines. These minerals must come from approved sources or be recycled in compliance with federal standards.
If your EV meets only one of these requirements, you may be eligible for a partial credit. Vehicles that don’t meet either requirement will not qualify for the credit.
What Do You Need to Qualify for This Credit as a Buyer and Vehicle Owner?
Your new Honda EV and your personal situation must meet several important requirements.
Vehicle eligibility requirements:
- Battery capacity of at least 7 kilowatt-hours
- Final assembly in North America
- MSRP limits: $80,000 or less for trucks, SUVs, and vans; $55,000 or less for other vehicle types
- Manufactured by a qualified automaker
Additionally, the sale must be reported to the IRS, and income limits for buyers apply.
Why Is Timing Critical When Considering an EV Purchase at Showcase Honda?
The federal EV tax credit program is set to expire on September 30, 2025. After this date, buyers won’t be able to claim the credit at the point of sale but will have to wait to file it on their tax returns. This change could delay your savings and complicate your buying decision.
For those thinking about installing a home EV charger, the related tax credit will end even sooner, on June 30, 2026. Taking advantage of these incentives now can save you money both on your vehicle and on charger installation.
How Can Showcase Honda Support You in Navigating These Incentives?
We’re committed to helping our Phoenix customers understand and utilize these programs. Our team can guide you through the vehicle eligibility requirements and income qualifications, clarify the purchasing process, and help you complete any necessary paperwork.
By acting now, you can maximize your savings and enjoy the benefits of electric driving sooner. Visit Showcase Honda today to explore your options and take full advantage of current federal EV incentives.
