Electric Vehicle Tax Credit in Oregon

Electric vehicles are becoming increasingly popular, and for good reason. Not only do they provide an enjoyable driving experience with their immediate and consistent torque, but they also offer huge environmental and cost benefits compared to traditional gasoline-powered cars.

The top 10 commonly asked questions about electric vehicle tax credits in the state of Oregon

1. What is the electric vehicle tax credit in Oregon?

The electric vehicle tax credit in Oregon is a state tax credit that is available to residents and businesses that purchase or lease qualifying plug-in electric vehicles (EVs). The credit can be used to offset the cost of the vehicle or applied towards any tax liability owed.

2. How much is the tax credit for purchasing an electric vehicle in Oregon?

In Oregon, the electric vehicle tax credit is currently set at $2,500 for new battery-electric vehicles or plug-in hybrid electric vehicles with a 10-kWh battery or greater. The credit is capped at $1,500 for plug-in hybrid electric vehicles with less than 10-kWh battery capacity.

3. Which electric vehicles are eligible for the tax credit in Oregon?

Recently, the Oregon DEQ announced a suspension of the Oregon Clean Vehicle Rebate Program as of May 1st, 2023. However, the federal tax credits for electric vehicles were modified by the federal Inflation Reduction Act, which was passed into law in August 2022. The 200,000 car cap per manufacturer has been eliminated, and in its place, a plan has been put in place that will maintain the tax credit of up to $7,500 available for 10 years, or until December 2032. Although the credit currently has income restrictions and price caps based on the kind of car ($80,000 for vans, sport utility vehicles, and pickup trucks and $55,000 for other vehicles), it is still available.

4. How do I claim the electric vehicle tax credit in Oregon?

To claim the electric vehicle tax credit in Oregon, you must file the Oregon Electric Vehicle Rebate Application along with your Oregon personal income tax return or corporate excise tax return. Be sure to include documentation that shows the make, model, and purchase or lease date of the vehicle, as well as its battery size.

While the staff at Gresham Ford knows their vehicles, we are not tax professionals and encourage anyone purchasing an electric vehicle speak to their own tax professional in order to verify their eligibility as well as the vehicle's eligible status with the State and Federal government.

5. Do I need to apply for the electric vehicle tax credit in Oregon before purchasing the vehicle?

No, you do not need to apply for the electric vehicle tax credit in Oregon before purchasing the vehicle. However, you must apply for the credit when you file your Oregon personal income tax return or corporate excise tax return for the year in which the vehicle was purchased or leased. Again we encourage any potential electric vehicle owners to consult with their tax professional prior to completing the purchase of any electric vehicle in Oregon.

6. Is the electric vehicle tax credit in Oregon a refundable credit?

No, the electric vehicle tax credit in Oregon is not refundable. If your tax credit is larger than your total Oregon tax liability, you cannot receive a refund for the difference.

7. Can I claim the electric vehicle tax credit in Oregon if I lease the vehicle rather than purchasing it?

Yes, you can claim the electric vehicle tax credit in Oregon if you lease the vehicle. However, the federal tax credit can only be claimed by the lessor, not the lessee. We sound like a broken record at this point but please contact your tax professional prior to purchasing an electric vehicle in order to solidify any available tax credits or discounts.

8. Is there an income limit to claim the electric vehicle tax credit in Oregon?

Electric Vehicle Tax Credits in Oregon: Standard Credit

The initiative is open to corporations, nonprofits, government organizations, and Oregon citizens. There is no minimum income criterion, and this category includes new battery electric automobiles, plug-in hybrid electric vehicles, and electric motorbikes with a base MSRP under $50,000. The possible offer amounts are $750 for motorcycles with zero emissions, $1,500 for batteries with less than 10 kWh, and $2,500 for batteries with more than 10 kWh.

Electric Vehicle Tax Credits in Oregon: Charge Ahead Credit

Residents of Oregon and nonprofit organizations that offer low- to moderate-income services are eligible for this program. Purchases or leases made before January 1, 2022, are eligible for this program. The minimum income criteria depend on the size of your household and the area you live in near Beaverton and Vancouver. For purchases made on or after January 1, 2022, the income criteria is depending on the applicant's household size and ranges up to 400% of the federal poverty line. To find out if you qualify, utilize the Oregon state eligibility calculator. For this program, the offer amount is $2,500 for cars bought or leased before January 1, 2022, and $5,000 for cars bought on or after that date.

Oregon Electric Vehicle Tax Credits: Standard and Charge Ahead Credit

The standard Charge Ahead Credit has the same requirements as the Charge Ahead Credit discussed above and is worth $4,000 for batteries under 10 kWh and $5,000 for batteries 10 kWh or greater. A number of programs have been established by the Oregon Department of Environmental Quality to encourage Oregonians to drive electric vehicles, whether they are brand-new or used. Manufacturers are permitted to offer tax credits of $7,500 as part of the Zero Emission Vehicle Program up until 200,000 vehicles are registered. The specifics of a few of the Oregon EV tax credits are provided below.

9. Can I claim the electric vehicle tax credit in Oregon if I purchase a used electric vehicle?

No, the electric vehicle tax credit in Oregon only applies to new electric vehicles purchased or leased on or after January 1, 2018.

10. Is the electric vehicle tax credit in Oregon available to businesses and organizations that purchase electric vehicles?

Yes, electric vehicle tax credits in Oregon are available to both individuals and businesses that purchase or lease qualifying electric vehicles. However, the credit is subject to the Oregon Corporate Activity Tax calculation. The Gresham Ford Commercial Vehicle Center is happy to help you explore how an electric fleet would change your expenses and day to day operations as well.

One of the best features of electric vehicles is the way that they drive. The instant torque delivered by the electric motor gives a smooth and responsive driving experience, leading to improved control when accelerating or cornering. This makes EVs ideal for those who enjoy driving as well as those who need to be able to maneuver quickly in tight spots or tricky conditions.

Electric vehicles have also become more practical thanks to advancements in battery technology. Many EV models now have batteries capable of supporting long-range drives and there are plenty of charging stations around Northwest region so you can easily top up your car on the go. In addition, EVs come in a range of different sizes and formats meaning there’s something available to suit many lifestyles - from small hatchbacks perfect for city living all the way up to large SUVs for families wanting more space. Prices can compare favorably with traditional gasoline vehicles too, making them even more attractive for savvy shoppers.

The biggest benefit though might just be cost savings; electric vehicles are much cheaper to operate than traditional gasoline cars due to their greater efficiency which results in lower running costs per mile driven. Not only that, but because electric vehicles don't use conventional oil or spark plugs they almost eliminate regular maintenance costs as well, saving drivers hundreds over the lifetime of their vehicle.

Of course it's not just practical reasons why you should consider an electric vehicle - there’s also the environmental impact to think of too! Electric vehicles produce zero emissions while being driven, making them an excellent choice if you want to reduce your ecological footprint while still getting around conveniently and comfortably.

So if you're considering buying a new car then don’t discount an electric vehicle - with their fun handling, practicality, affordability and sustainability advantages they could well be worth a look!