Trying to make sense of EV Federal Tax Incentives

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So I’m looking at either a Kia Niro EV or Hyundai Kona EV. I received the most recent numbers and incentives from Edmunds. But am confused about the tax credits. Both these vehicles still qualify for the $7500 federal tax credit, as well as a $2000 Maine EV rebate. Both would be payable to the manufacturer, i.e. would be part of my lease discount/rebate.

Here’s what Edmunds came back with on the two cheapest trims:

Hyundai Kona SEL: .00156 MF and 50% residual. $7250 lease cash

Kia Niro EX: .00130 MF and 57% residual. $9600 lease cash

If this “lease cash” would be applicable on top of the Tax Credits, these would be ridiculous deals. So at least the federal tax credit has to be included, right?
Except that the Hyundai lease cash is below the $7500 credit.

I’m clearly missing something - I’m hoping one of the expert Hackrs can enlighten me :slight_smile:

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With a lease, you don’t get the federal tax credit - you don’t own the car. The lessor (bank) gets it. It’s up to them to decide how much to pass on you. It can be a full pass-through, none, or even some. Captives typically offer tax credits as lease cash - thus the high lease rebate amounts. If there was double-dipping going on, there’d be a feeding frenzy on LH…

There’s a lot of discussion… a thorough search and read will help. Good luck

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Thanks @Kctham18 - I guess in the case of Hyundai, they decided to NOT pass on the full amount. I didn’t know that was an option on their part - makes a lot more sense now. And the Kia looks a lot more attractive :slight_smile:

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Look into the Ioniq too. If you’re on the east coast, speak to @AA-NJ, he does a lot of solid EV stuff out of NJ NY.

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