Paul Miller, certified public accountant and founder of Miller & Company LLP, joined Cheddar News to discuss what electric vehicle owners should know about tax credits and the new rules to qualify for them. "I would definitely make a phone call to your accountant ... to your CPA to ensure that you're getting the credit and it's applicable," he said.

Paul Miller, certified public accountant and founder of Miller &amp; Company LLP, joined Cheddar News to discuss what electric vehicle owners should know about tax credits and the new rules to qualify for them. "I would definitely make a phone call to your accountant ... to your CPA to ensure that you're getting the credit and it's applicable," he said.

Closing Bell

Stretching Your Dollar: Breaking Down EV Tax Credits

It is time for stretching your dollar where we give you tangible tips to help you make the most of your money. The Biden administration trying to incentivize buying electric and buying American with tax credits up to $7500 when you buy a US made E V. But as of yesterday, they are considering some new rules. So if you're in the market for an electric vehicle or you just bought one or you're looking to take advantage of the credits, don't worry because we're going to break down what it means for you. Joining me now is Paul Miller CPA and founder of the accounting firm, Miller and company L LP. Paul. Thank you so much for coming on the show. Let's start here with income eligibility. Who can qualify for these credits? Pretty much anybody. If you're married and you're a couple, your income has to be under 300,000. You know, it varies, married, single and, uh, had a household, but it's the, the, uh, it's 2 25 and this is correct and single is making 100 and 50,000 or less. That is accurate. Um, government, you can get up to $7500 of a credit, which is really nice. We did a couple of taxpayers, uh, just, just as we finished the deadline yesterday and it's really nice because you get the credit on your tax return, uh, to the extent that you have income tax. Well, what about retail price limits? Uh, because we've seen a lot of jockeying here for price points, especially from a company like Tesla, for instance, which I've been covering throughout the day, lowering prices, I think to take advantage of some of these credits, what are the retail price point cut offs in order to qualify for a credit? Well, for the car, it's $55,000. So Tesla has to get their 55,000 and for like an S U V or a sports van, it's $80,000. How does a used E V factor into that? We're showing a list of E V s that qualify for the full $7500 tax credit, Paul. I'm just going to run through them quickly for our viewers who are listening the Cadillac lyric, the Chevy Blazer, the Chevy bolt and bolt. Eu V. Chevy Equinox, the Chevy Silverado, the Ford F 1 50 Lightning standard and extended range. And then the Tesla Model three and the model Y. It's those model three and model Y versions that we've seen cut the less expensive ones, prices cut so far uh this year. So let's talk about the used electric vehicles though, Paul, how do those factor in? Do they apply for these credits? They do with the credits lower? It's not at the same level that they're at. Um, it's, um, a much lower price and there's years of service for the vehicle, it's up to $4000 or 30% of the purchase price. And, um, it's a, it's a little bit more finer detail that you have to get into than it just going into a dealer and getting a credit from a new car. How do the credits work? How do you fetch them and take advantage of them? The credits go on your tax return to the extent that you have income tax, they ask for the VIN number. So it's the government's, uh, clearly paying attention to this and wanting to make sure that they're real and you get it right on your tax returns. You get a really nice refund. Yeah. Well, filing taxes, I think can be daunting and everyone who hopefully made that deadline yesterday, Paul, I think could attest to that. Maybe you filed for an extension, but it's, it's still a piece of work right to get these taxes done. And so if this federal credit does apply to you, if you're an E buyer, would you recommend that people consult with a tax professional to make sure that they do properly recoup this money 100% because the laws are constantly changing as you mentioned on the, uh on the beginning of your program that you said that the Biden administration is looking to change the credit. So I would definitely just make a phone call to your accountant to your CPA to ensure that you're getting the credit. And uh it's applicable. How do E V chargers fit into this? You have to be able to charge the car that's important. Uh We are showing a list, a list now of E V S that don't qualify. But let's talk about the charging aspect first, Paul for a second. If we can, the, the country is offering government's offering $1000 credit for an E V charger, which is really nice. And again, it's, there's a list of criteria that you have to, to make it. I'm sure that the dealer will go over it with you before. I would also just check. There also might be some state eligibility for the state that you live in. Ok. This was helpful. Uh So if you're in the market to buy an E I hope these tips helped you. Uh Paul Miller, CPA and founder of the accounting firm, Miller and company L LP Paul. Thank you.