Due to the Inflation Reduction Act of 2022, plug-in hybrid and all-electric vehicles purchased after August 16, 2022 may not qualify or may not quality for the full amount of the Federal Tax Credit. Visit https://www.fueleconomy.gov/feg/taxevb.shtml to learn more.

If you're the proud owner of an all-electric Audi vehicle or an Audi plug-in hybrid that was purchased new in or after 2010, you may be eligible for a federal income tax credit of up to $7,500. Learn all about the requirements, the varying credit amounts, which models are eligible, and what separates an all-electric vehicle (EV) and a plug-in hybrid (PHEV) from our Audi Ontario dealer near Los Angeles today. 

What is an Electric Vehicle? 

All-electric vehicles (EVs), also referred to as battery electric vehicles, use a battery pack to store the electrical energy that powers the motor. EV batteries are charged by plugging the vehicle into an electric power source. Although electricity production may contribute to air pollution, the U.S. Environmental Protection Agency categorizes all-electric vehicles as zero-emission vehicles because they produce no direct exhaust or tailpipe emissions.

Both heavy-duty and light-duty EVs are commercially available. EVs are typically more expensive than similar conventional and hybrid vehicles, although some of that cost can be recovered through fuel savings, a federal tax credit, or state incentives. (US Department of Energy) 

What is a Plug-In Hybrid Electric Vehicle? 

Plug-in hybrid electric vehicles (PHEVs) use batteries to power an electric motor and another fuel, such as gasoline, to power an internal combustion engine (ICE). PHEV batteries can be charged using a wall outlet or charging equipment, by the ICE, or through regenerative braking. The vehicle typically runs on electric power until the battery is nearly depleted, and then the car automatically switches over to use the ICE. (US Department of Energy) 

Eligible Electric and Plug-In Hybrid Audi Models

Federal Tax Credit Requirements 

To be certified for the credit by the manufacturer, the vehicle must meet the following requirements:

• The vehicle must be made by a manufacturer (i.e., it doesn't include conventional vehicles converted to electric drive).

• It must be treated as a motor vehicle for purposes of title II of the Clean Air Act.

• It must have a gross vehicle weight rating (GVWR) of not more than 14,000 lbs.

• It must be propelled to a significant extent by an electric motor that draws electricity from a battery that

• has a capacity of not less than 4-kilowatt hours and
• is capable of being recharged from an external source of electricity.

How Do I Claim My Federal Tax Credit?

Claiming your federal tax credit is easy! Simply fill out Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit.

For vehicles acquired for personal use, report the credit from Form 8936 on the appropriate line of your Form 1040, U.S. Individual Income Tax Return.

For vehicles purchased in 2010 or later, this credit can be used toward the alternative minimum tax (AMT).

If the qualifying vehicle is purchased for business use, the credit for the business use of an electric vehicle is reported on Form 3800, General Business Credit.

Learn More From Audi Ontario Near Los Angeles

If you're interested in hearing more about our Audi all-electric vehicles or our plug-in hybrid models, please feel free to contact us online or stop in to pay us a visit here at Audi Ontario, located at 2272 East Inland Empire Boulevard in Ontario, CA. where we can put you behind the wheel for a test drive!