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If you are looking for a new car that is environmentally friendly and also saves you money on taxes, you might be interested in Volvo's range of plug-in hybrid and electric vehicles. These cars are eligible for a federal tax credit of up to $7,500, depending on the battery capacity and your tax situation. In this blog post, we will explain which Volvo cars qualify for the tax credit and how to claim it.
The federal tax credit is available for new plug-in hybrid and electric vehicles that are purchased or leased in the United States. The amount of the credit varies depending on the size of the battery and the gross vehicle weight rating. The credit ranges from $2,500 to $7,500 per vehicle. The credit is not refundable, which means that you can only use it to reduce your tax liability. If your tax liability is less than the amount of the credit, you will not receive the full benefit.
Volvo offers several models of plug-in hybrid and electric vehicles that qualify for the federal tax credit. These include:
- The Volvo XC40 Recharge Pure Electric, which is Volvo's first fully electric SUV. It has a battery capacity of 78 kWh and a range of 208 miles. It qualifies for the maximum credit of $7,500.
- The Volvo XC60 Recharge Plug-in Hybrid, which is a midsize SUV that combines a gas engine with an electric motor. It has a battery capacity of 11.6 kWh and an electric range of 19 miles. It qualifies for a credit of $5,419.
- The Volvo XC90 Recharge Plug-in Hybrid, which is a luxury SUV that also combines a gas engine with an electric motor. It has a battery capacity of 11.6 kWh and an electric range of 18 miles. It qualifies for a credit of $5,419.
- The Volvo S60 Recharge Plug-in Hybrid, which is a sporty sedan that offers both performance and efficiency. It has a battery capacity of 11.6 kWh and an electric range of 22 miles. It qualifies for a credit of $5,419.
- The Volvo S90 Recharge Plug-in Hybrid, which is a premium sedan that delivers elegance and comfort. It has a battery capacity of 11.6 kWh and an electric range of 21 miles. It qualifies for a credit of $5,419.
- The Volvo V60 Recharge Plug-in Hybrid, which is a versatile wagon that combines practicality and style. It has a battery capacity of 11.6 kWh and an electric range of 22 miles. It qualifies for a credit of $5,419.
To claim the federal tax credit, you need to fill out Form 8936 (Qualified Plug-in Electric Drive Motor Vehicle Credit) and attach it to your federal income tax return. You also need to have proof of purchase or lease of the vehicle, such as a sales receipt or a lease agreement. You can only claim the credit for the year in which you purchased or leased the vehicle.
The federal tax credit is subject to phase-out once a manufacturer sells more than 200,000 eligible vehicles in the United States. As of June 2023, Volvo has not reached this limit yet, so you can still take advantage of this incentive if you buy or lease a new Volvo plug-in hybrid or electric vehicle.
If you want to learn more about Volvo's plug-in hybrid and electric vehicles and how they can benefit you financially and environmentally, please visit our website or contact us today. We will be happy to answer any questions you may have and help you find the best car for your needs.
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