If you are planning on buying an electric vehicle in hopes of receiving a tax credit you better make that purchase in the next two weeks. Louisiana Clean Fuels Co-Coordinator Tyler Hermann said the legislature passed a bill that accelerates the sunset date of the up to $2,500 tax credit for the purchase of an alternative fuel vehicle.
“The bill that just passed and is going to the Governor, moves that sunset date to July 1st. So, it would sunset in about two weeks from now,” said Hermann.
The original date was January 1, 2022.
Hermann said it is too early to tell if this will have an impact on a consumer’s choice to purchase an electric vehicle in the state, but he said it could have a large economic impact on fleets that use the vehicles because they operate on a specific procurement schedule.
“So, if they were planning on purchasing new vehicles say in fall, and those were alternative fuel vehicles this could pretty significantly impact their economics, $2,500 that they’re not going to get,” said Hermann.
Hermann said if you are in the market and buying specifically to take advantage of the tax credit, be advised it is a nonrefundable income tax credit, so you have to have $2,500 of tax liability left over for the 2021 tax year.
“If you are budgeting for such things and you’re trying to make a purchase very quickly in the next two weeks, I definitely encourage you to make sure that you really look at your tax situation and make sure that you’re actually going to take the benefit of it,” said Hermann.
Comments