Electric Vehicle Federal Tax Credit FAQ

Interested in purchasing a new Volvo Plug-In Hybrid or Electric Vehicle?
You may be eligible for up to $7,500 in a federal tax credit.

Information on the Electric Vehicle Federal Tax Credit from Leikin Volvo Cars Cleveland

As with anything regarding governmental "fine print," nuances and clauses are anything but easy to comprehend. And you might feel as if stuck on a hamster wheel trying to negotiate an answer from lawyerly phrases.

All you want to know is how the Electric Vehicle Federal Tax Credit may apply when you purchase a 2021 Volvo XC40 Recharge from Leikin Volvo Cars Cleveland.

Electric-Vehicle Environmental Incentives

There are many incentives to piloting an Electric Vehicle (EV), let alone a Volvo luxury SUV with a pure-electric grounding. You're helping preserve the environment by eliminating tailpipe emissions, not to mention doing your part toward fossil fuels eventually becoming passe.

And in that, you're not beholden to ever-fluctuating fuel prices and the world events that drive them. You're entirely free of all that binds when operating a Volvo XC40 Recharge luxury SUV. Call it the Nordic theory of love.

By eliminating dependencies, the individual is unencumbered to live and love as he or she wants. Autonomy and independence truly yours.

And the Volvo XC40 Recharge Pure-Electric SUV gets you there … in several ways.

What is the Electric Vehicle Federal Tax Credit?

The Electric Vehicle Federal Tax Credit is a financial incentive premised upon your yearly tax return and what you will owe in taxes. The key phrase to be mindful of is "up to" when deciphering what the tax credit actually means.

Very simply, should you purchase a Volvo XC40 Recharge Pure-Electric luxury SUV from Leikin Volvo Cars Cleveland, you're entitled to a tax credit of up to $7,500. So, if your federal tax bill comprises $10,000, subtract the credit of $7,500.

Should you owe less in taxes than the $7,500 credit, the remainder of your credit "balance" will be applied to the following year in taxes.

When leasing Volvo XC40 Recharge, the full amount of the credit goes back to Volvo Cars. Though Volvo Cars is under no obligation to lower monthly lease payments, it may take the credit earned into consideration toward your lease agreement.

What are the Eligibility Requirements for Other Volvo Models?

The Electric Vehicle Federal Tax Credit is premised upon an EV's battery size.

For some models, the credit provided will fall below the average credit of $7,500 applied to Volvo XC40 Recharge. This will apply to Volvo Recharge Plug-In hybrids given their part-fuel, part-EV design.

Below is a cursory list of the qualifying Volvo hybrids and the applicable, "up to" tax credit:

  • Volvo S60 Recharge Plug-In hybrid sedan, $5,419.
  • Volvo S90 Recharge Plug-In hybrid sedan, $5,419.
  • Volvo V60 Recharge Plug-In hybrid wagon, $5,419.
  • Volvo XC60 Recharge Plug-In hybrid luxury SUV, $5,419.
  • And, Volvo XC90 Recharge Plug-In hybrid luxury SUV, $5,419.

In all, due to hybrid operation between fuel and electric powering, the tax credit is less as opposed to a pure-electric Volvo offering in Volvo XC40 Recharge.

What 'Fine Print' Should I Be Aware Of?

Trying to ascertain fine print will always be a hassle. Though with the purchase of Volvo XC40 Recharge or a hybrid cousin, you're quite assured those EV requirements have been met toward the tax credit. However, some stipulations do exist:

  • Given our proximity to Canada from Willoughby, the Volvo XC40 Recharge must primarily be used in the U.S.
  • The tax credit doesn't apply to EVs that are purchased for purposes of reselling.
  • The Internal Revenue Service (IRS) does not require Volvo Cars to present to the agency any certification regarding tax-credit qualifications. Though, given Volvo Cars' reputation of transparency, look to Leikin Volvo Cars Cleveland or Volvo Cars' U.S. website should you have concerns.
  • As well, the IRS may reject any claim for a tax credit they deem unfit.

Volvo Cars has prided itself on a tradition of loyalty to its clientele. And be sure, the Volvo Recharge models featured at Leikin Volvo Cars Cleveland meet with those pure-electric and hybrid qualifications affording the Electric Vehicle Federal Tax Credit.

Does Ohio Offer Incentives When Purchasing a Volvo XC40 Recharge?

Many states offer their own incentives toward purchasing an EV or hybrid. These may come in the form of rebates or reduced vehicle taxes and registrations fees. As well, there might be some leniency regarding vehicle inspections, carpool lanes used and free parking with ownership of a Volvo XC40 Recharge in Ohio.

2022 Volvo C40 Recharge, the Pure-Electric Crossover

Coming soon is a Volvo pure-electric vehicle that will likely qualify for the Electric Vehicle Federal Tax Credit, while comprising a truly unique statement:

  • Volvo C40 Recharge will provide for a pure-electric range of 200+miles from a full charge.
  • With an interior totally free of leather, the word "luxury" takes on a whole new meaning.
  • Expect acceleration from stillness to 60 mph in just 4.7-seconds.
  • With Google built into the technological suite, the simple utterance of "Hey Google" will bring applications of Assistant, Maps and Play to life and your voice command.

Add this pure-electric crossover to a Volvo line-up deep with plug-in hybrids, the Cleveland client has a choice of EV efficiency and those federal tax credits that accompany. Like Volvo XC40 Recharge, Volvo C40 Recharge will be in high demand given Volvo excellence in safety and engineering.

Nothing comes close.

Let Us Answer Your EV Federal Tax Credit Questions

Leikin Volvo Cars Cleveland accentuates that Volvo Cars' hallmark of a client-centered experience.
So, should you have any questions as to the Electric Vehicle Federal Tax Credit, visit us for more information.

  1. Leikin Volvo Cars Cleveland

    38750 Mentor Ave
    Willoughby, OH 44094

    • Sales: 866-210-0120
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