I’m in process of negotiating a lease on a BMW i3. Is my understanding of Fed and CA State electric vehicle incentives correct?
Lease Incentives for Electric Vehicles:
Fed Tax Credit ($7500) + any down payment = Cap Cost Reductions
CA State Rebate is a money-back rebate to the customer from the state of CA. It is not a taxed rebate.
Fed Tax Rebate is taxed at local sales tax rate. The tax can be paid in full at signing, therefore not capitalized.
I’d love to know if there are any flaws in my understanding. Thanks!