Federal Tax Credit for Chrysler Hybrid Models
Chrysler owners in the Signal Hill area driving a hybrid vehicle may qualify for a federal tax credit of up to $7,500. Glenn E. Thomas wants to ensure our auto shoppers are making the most of their hybrid vehicles so we have your guide to understanding the federal tax credit.
Eligible Chrysler Hybrid Vehicle
2022 and 2023 Chrysler Pacifica Plug-in Hybrid minivans whose MSRP is $80,000 or less are eligible for the tax credit.
What is a Plug-in Hybrid Vehicle?
Plug-in hybrid vehicles give you the best of both worlds between hybrid and electric vehicles. These models utilize a gasoline engine and large rechargeable batteries to help drivers reach impressive ranges. As the name suggests, these vehicles are able to be charged to help get even more from your battery and then will switch to the gasoline engine when charge is running low.
What are the Federal Tax Credit Requirements?
In order to qualify for the tax credit, your vehicle must meet the following parameters:
- Made from a qualifying manufacturer (Chrysler is a qualified brand)
- Battery capacity must be at least 7 kilowatt hours
- The vehicle must have a gross weight of less than 14,000 pounds
- Undergo final assembly in North America
- The sale only qualifies if you buy the vehicle new and the seller reports the proper information to the IRS
In addition to vehicle requirements, owners must also fall within certain parameters. The vehicle can only be used for personal use not resale and you must use it primarily in the US. Additionally, modified adjusted gross income (AGI) may not exceed:
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
How to Claim Your Federal Tax Credit
You can easily claim your tax credit when filing your taxes. Just fill out the Qualified Plug-in Electric Drive Motor Vehicle Credit using Form 8936. Report this form on the Form 1040, U.S. Individual Income Tax Return when filing your personal tax return.
Stop by Glenn E. Thomas Chrysler Dodge Jeep Ram Near Signal Hill
Are you ready to go green with a new Chrysler? Let the team at Glenn E. Thomas Chrysler Dodge Jeep Ram help you find your perfect vehicle. We are pleased to bring hybrid vehicles to shoppers in the Signal Hill, Long Beach, Huntington Beach, South Bay areas. With any questions do not hesitate to contact us online.
