Is there an Electric Vehicle Tax Credit in New Hampshire?

As the automotive industry shifts towards sustainable and eco-friendly transportation solutions, electric vehicles have emerged as a popular choice for environmentally conscious drivers. In New Hampshire, understanding the availability of electric vehicle tax credits can significantly impact the affordability and appeal of transitioning to an electric vehicle. At McFarland Ford, we are committed to providing valuable insights and guidance on the potential tax incentives for EV owners in New Hampshire, empowering drivers to make informed decisions about their vehicle purchases.

New Hampshire does not currently offer state-specific tax credits or rebates for purchasing electric vehicles; however, EV owners in New Hampshire can still benefit from tax incentives provided by the federal government to promote the adoption of electric vehicles. Understanding these federal tax credits can help EV buyers in New Hampshire offset the upfront costs of purchasing an electric vehicle.

The federal government offers a tax credit for the purchase of qualified plug-in electric vehicles, including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). The federal EV tax credit can offer up to $7,500, depending on the vehicle's battery capacity and manufacturer. This tax credit is designed to incentivize consumers to invest in electric vehicles and support the growth of the EV market, thereby reducing emissions and greatly helping the environment. Here are the three different tax credit possibilities:

• The vehicle only meets the critical minerals requirement? $3,750
• The vehicle only meets the battery components requirement? $3,750
• The vehicle meets both requirements? $7,500

To qualify for the federal electric vehicle tax credit, the purchased vehicle must meet certain criteria, including battery size, vehicle weight and more. Additionally, the tax credit phases out for each manufacturer once they reach a certain threshold of EV sales. It's important for EV buyers in New Hampshire to verify their vehicle's eligibility for the federal tax credit and consult with a tax professional for personalized guidance. Here’s a full list of criteria for the vehicle, the sale of the vehicle and the buyer:

• You must buy it for your own use, not for resale
• You must use the vehicle primarily in the United States
• Your modified adjusted gross income may not exceed:
  • $300,000 for married couples or surviving spouses
  • $225,000 for heads of households
  • $150,000 for everyone else
• The vehicle must have a battery capacity of at least 7 kWh
• The vehicle must have a gross vehicle weight rating of less than 14,000 lbs.
• The vehicle must be made by a qualified manufacturer; unless it is an FCV
• The vehicle must have undergone final assembly in North America
• The vehicle must meet critical mineral and battery component requirements
• You must purchase the vehicle new; a used vehicle does not qualify
• The seller must report required information to both you and the IRS at the time of sale
• The vehicle’s MSRP cannot exceed $80,000 if it is a van, truck or SUV
• The vehicle’s MSRP cannot exceed $55,000 if it is any other type of vehicle

To claim the federal electric vehicle tax credit, EV owners must complete IRS Form 8936, Clean Vehicle Credits, and submit it along with their federal tax return. The tax credit amount will be applied to reduce the taxpayer's federal tax liability, providing a direct financial benefit to eligible EV owners. Backing up a bit, though, you’ll want to make sure to get a time-of-sale report from the dealer upon purchasing your vehicle. This assures you that the dealer sent the required report to the IRS on the purchase date, so it’s an important document you’ll want to keep for your records.

While New Hampshire does not currently offer state-specific tax credits for electric vehicle purchases, EV buyers in the state can still take advantage of federal tax incentives to make their transition to electric vehicles more affordable and rewarding. By understanding the federal electric vehicle tax credit, verifying eligibility, and partnering with a trusted dealership like McFarland Ford, drivers in New Hampshire can access valuable resources and support to navigate the EV landscape effectively. With the potential savings and benefits of the federal tax credit, there’s never been a better time to purchase an electric vehicle in New Hampshire. If you have any questions, don’t hesitate to give us a call here at McFarland Ford!