How to calculate the EV tax credit passthrough

[gregnorz]

This might be answered clearly somewhere else, but I’m trying to fully understand how the EV tax credit works on leases where the dealer does a passthrough. The end goal is for me to use the lease calculator and Rate Findr to get close to accurate lease payment numbers (with the expectation that the numbers won’t be perfect).

Note that I’m doing the calculations for a lease in Texas, and I need to add the full sales taxes divided to the monthly payment.

My current method on Rate Findr is to put in MSRP and Selling Price (usually the same around here). Tax Rate is 6.25% for TX. I put the $7500 credit under Untaxed Incentives and chose to Capitalize Taxes because, again, Tejas.

RV/MF/Miles are all as Rate Findr fills in.

I add in a guess for the various fees unless I can get the real numbers. I choose Tax Method as Selling Price; Fees Are Not Taxed.

Does this sound right for estimating the payment with a $7500 pass-through credit on the lease? Link to the Calculator I used on a 2023 ID.4: CALCULATOR | LEASEHACKR

Hopefully I’m understanding this correctly!

[mllcb42]

If youre using the rate findr calculator, just select the incentive.

[gregnorz]

Ah, that seems so obvious! I didn’t expand to see that. So the $7500 is a taxed incentive.

Is Rate Findr fully updated with all of the makers doing a pass-through? It seems like a few others, like Ford, are doing it recently but the Rate Findr isn’t updated. Chevy Bolt EUV is another I was thinking about.