The easiest way to get a $7,500 tax credit for an electric vehicle? Consider leasing.

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May 30th, 2023

Leasing is starting to look like the cheapest way to get an electric vehicle, because the U.S. government is giving it a big advantage. Dealers can apply up to the full $7,500 U.S. tax credit to leases of all electric vehicles regardless of where they're made.

Paul Sancya / Paul Sancya

Thanks to a boost from the government, leasing — not buying — is becoming the most affordable way to get your hands on an electric vehicle.

Last year’s Inflation Reduction Act provided a federal tax credit of up to $7,500 to use toward an EV. Under the rules, a dealer can apply that credit to any leased electric vehicle, no matter where it’s made, to reduce a customer’s monthly payment.

Not so for people who buy an EV.

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