Americans set to score an extra $2,500 tax credit but residents will have to wait to claim

AMERICANS can make more than $2,500 on an electric vehicle tax credit.

More and more states are offering incentives for drivers who buy electric vehicles (EVs).

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On July 1, Colorado increased the state electric car rebate from $2,000 to $5,000.

Residents can claim the cash for any electric vehicle with a starting price of less than $80,000.

If they can wait until Jan. 1, 2024, an additional $2,500 credit will be given to cars costing $35,000 or less, according to the Colorado Energy Office.

Meanwhile, low- and middle-income residents can get up to a $6,000 rebate for a new EV purchase or $4,000 for a used EV purchase.

Residents are eligible for a trade-in program if their vehicle is a 2011 or older gasoline or diesel model or if the car fails the state emissions test.

State officials, using data from the federal Department of Housing and Urban Development, clarified that income requirements would vary by location.

Colorado has committed $2 million to its electric vehicle rebate initiative to allow the system to last through mid-2024.

electricity savings

Several states offer similar discounts for drivers who drive green.

Massachusetts electric vehicle rebate program, MOR-EV, offers up to $5,000.

Residents who own or lease a battery electric vehicle costing less than $55,000 may qualify for a $3,500 refund.

For plug-in hybrids that cost less than $50,000, the discount is $1,500.

Low-income drivers receive a $1,500 “adder,” bringing the total possible discount amount to $5.00.

Claiming the discount requires an application to be submitted within 90 days of purchase.

Unfortunately, some programs were a bit too successful and the money ran out.

The Charge Up New Jersey program launched in May 2020 and has awarded approximately $90 million in rebates over the past three years.

According to InsideEVs, the state suspended rebates on April 17 after paying out an estimated $35 million for over 10,000 model purchases this year.

On July 1, the stimulus returned, but Peter Peretzman, a spokesman for the Board of Public Utilities, said he didn’t know if there were any plans to increase the program’s funding for the next fiscal year, the Associated Press reports.

Another reduction is a property tax credit of $1,044.

Also, check out the discount that went from $650 to $1,000.