Each vehicle manufacturer is allowed to sell up to 200,000 qualifying plug-in electric vehicles (battery-electric cars and plug-in hybrids) before the EV tax credit on their products begins to phase out.
How the electric car tax credit phase-out works is a bit complicated. It happens over a one-year period starting at the beginning of the second calendar quarter after the manufacturer hits the 200,000-unit threshold. At that time, the tax credit available to buyers drops to 50 percent of the original incentive of $7500 available on the Pacifica Hybrid and continues at that level for the next two quarters. In the third and fourth quarter of the phase-out period, the tax credit drops to 25 percent of the original amount.
How the electric car tax credit phase-out works is a bit complicated. It happens over a one-year period starting at the beginning of the second calendar quarter after the manufacturer hits the 200,000-unit threshold. At that time, the tax credit available to buyers drops to 50 percent of the original incentive of $7500 available on the Pacifica Hybrid and continues at that level for the next two quarters. In the third and fourth quarter of the phase-out period, the tax credit drops to 25 percent of the original amount.
After the phase-out period, no battery-electric vehicle or plug-in hybrid manufactured by the automaker is eligible for the tax credit.
You cannot claim the tax credit until you take delivery of the new vehicle. Deposits and prepayments do not count.
According to Inside EVs, Chrysler sold 5349 Hybrids in 2017 and have sold 5454 through October of this year. These numbers are estimates and are based on State/Rebate Data and other reports.
