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Wednesday, December 22, 2010
Home Installation Tax Credit a Head Scratcher
Congress just decided to cut the tax credit for electric vehicle chargers from 50% to 30%, which goes from $2,000 to a maximum of $1,000. Home charging installations are costing people about $1,500 to $3,000. The tax cut means more comes out of pocket for the acquisition cost.
I still want to find out how this will be worked out with the car purchase. If I buy a Nissan Leaf for about $32,800 and need to invest $2,500 for a home charger to be bought and installed in my garage, how does that play out int the loan? Let's say the federal tax incentive brings the charger cost down to $1,500. I would imagine I still need to pay $2,500 and get the $1,000 back as a tax incentive. But might it be included in the purchase price, such as the loan would cover the car and the home installation, and would the tax incentive affect the deal?
Lots of questions I still need to get answered.
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