So I know many times when a car maker offers loyalty or a lease credit on a car…that the amount is taxable and the lessee has to pay sales tax on that amount.
How is the $7500 EV credit handled in terms of that? Does the lessee have to pay sales tax on that $7500? Or is it akin to the dealer basically taking $7500 off the MSRP?
The $7500 federal rebate goes to the bank (lessor) who buys the car. Some banks provide EV incentives to the lessee that is not necessarily $7500 (like $2k for Blazer or $10k for Ioniq, etc.)
Depending on your state/county, the incentive could be taxed or not. In most cases, it is taxed.
The incentives gets subtracted from your MSRP as a capital cost reduction to give the final sale price.
The $7500 credit IS an incentive, so it is taxed like an incentive.
You do not receive a federal tax credit on a lease. You get an incentive from the bank.
It depends on the state / car.
If in CA and BMW, you are paying for that in taxes, if it was say a Volvo, you don’t.
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