As you’re shopping around the Bellevue area for your premium BMW electric vehicle, you’ve probably found info about Washington electric vehicle tax incentives. One of the top questions shoppers ask is, “Does Washington State have an EV tax credit?” and “What is the Washington State clean vehicle rebate?”
We have all your details below! As your trusted source for car-buying needs, we’re also here to provide handy EV tips to make your shopping experience more efficient and enjoyable.
What Are the Washington Electric Vehicle Tax Incentives?
So, does Washington State have an EV tax credit? Yes, they do! If you’re buying an electric vehicle (EV) or a plug-in hybrid electric vehicle (PHEV), the Landmark Inflation Reduction Act of August 2022 states that you can receive up to $7,500 in tax credits. However, it depends on the make and model you have your eyes on.
Let’s explore some additional tax credits that you may be aware of.
Washington State Clean Vehicle Rebate
As of August 2019, Washington has a tax incentive when you buy a new or used electric vehicle. Consumers can avoid paying a sales tax on up to $25,000 of the purchase price of the new car and up to $16,000 for used cars. Eligible vehicles must be capable of traveling at least 30 miles on just the battery power.
Alternative Fuel Vehicles and Plug-In Hybrids Washington State Tax Exemptions
In 2019, Washington State reinstated the sales and use tax exemption for vehicles powered by a clean alternative fuel and certain plug-in hybrids. This exemption applies to dealerships and private sales of new, used, and leased vehicles sold on or after August 1, 2019.
- The new vehicle transactions can’t exceed $45,000 in the purchase price or lease payments.
- The used vehicle transactions can’t exceed $30,000 in fair market value or lease payments.
These thresholds can also include your vehicle’s trade-in value, if applicable. So, if your new car is $48,000 and your vehicle’s trade-in value is $6,000, you can’t receive the tax exemption, even though the trade-in brought your cost to $42,000 because it was worth more than the $45,000 limit.
Federal EV Tax Credit Incentive
As stated above, when it comes to the available federal EV tax credits, you’ll find that, “All-electric, plug-in hybrid, and fuel cell electric vehicles purchased new in 2023 or after may be eligible for a federal income tax credit of up to $7,500.” Which can be good news for you and your EV purchase!
Federal EV Tax Credit Incentive: Origin of Battery Components
The U.S. is incentivizing the production of battery components at home or in free-trade partner countries. To get half of the $7,500 max tax credit for 2024, at least half of your vehicle’s battery components must have been produced in the United States or countries with free-trade agreements with the U.S.
Used Clean Vehicle Credit
From the start of January 1, 2023, by purchasing a qualified used electric vehicle or fuel cell vehicle from a licensed dealer for $25,000 or less, you may be eligible to take advantage of a “used clean vehicle tax credit”. Something you may also see mentioned as an “owned clean vehicle credit” as well. Not sure if a vehicle qualifies? Be sure to contact us today or get started by browsing our pre-owned vehicle inventory!
Learn More About Washington State EV Tax Credits Today!
Want to know more about your personal incentives and additional EV tax credits? Call us today! We’ll answer your questions and help provide the information needed so you know what credits you’re eligible for. Our team is here to help you find the BMW EV that checks off all your boxes in a stress- and hassle-free environment. Explore our current inventory and special offers, then fill out our online application to get pre-approved for financing.
Disclaimer:Â Please note, these incentives are frequently changing. The 2024 EV Instant Rebate Program is over for 2024. Contact us for current incentives and offers on all electric vehicles.
