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The federal tax incentive is a refundable tax credit. So it doesn't interact with deductions. It's regressive in the sense that you need to be buying a new car
by gdickie 7y ago
The federal tax incentive is a refundable tax credit. So it doesn't interact with deductions.
It's regressive in the sense that you need to be buying a new car to get it. But it passes to used car owners in the form of a lower residual value for the car. A one year old plug-in hybrid lease-return can be a great deal.
- NickM 7y agoIt is a credit, but it is not refundable and cannot be carried over into future years. However, it has led to some pretty good lease deals for people that can’t get the full credit themselves, since for leases the credit goes to the company providing the lease. Also good points about the value of the credit being effectively passed on for used car sales.