I leased a PHEV Ford Escape 2022 in July. My car qualifies as an EV, but the credit is not available for leases (according to Google). Is there anything I can do to get all or part of the credit - perhaps buy out my lease and apply for a used car credit.

Hi MartinV, thanks for the event question.

 

Inflation Reduction Act of 2022 (IRA 2022) signed into law on 8/16/2022. Hence terms used here are “Pre-IRA 2022” and “Post-IRA 2022.”

 

I have two comments as follows:

 

According to Internal Revenue Code 30D - Clean vehicle credit:

(d) New clean vehicle (1) In general   the term "new clean vehicle" means a motor vehicle (B) which is acquired for use or lease by the taxpayer and not for resale...

First page of below link -

https://www.law.cornell.edu/uscode/text/26/30D

 

According to below IRS link - 2022 Ford Escape Plug-In Hybrid, EV credit is $6,843. 

Index for Manufacturers published by the IRS

https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit

 

For delivery on July 2022 "Pre-IRA 2022" rules apply.

In general, based on your descriptions, you may claim the EV credit for tax year 2022. Please contact your dealer for further clarification.

 

Thank you and hope the above helps.