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The federal tax credit for new plug-in electric vehicles is worth $2,500 plus $417 for each kilowatt-hour of battery capacity over 5 kWh, and the portion of the credit determined by battery capacity cannot exceed $5,000. Therefore, the total amount of the credit allowed for a new PEV is $7,500.
Each automakerâs eligible plug-ins receive a $7,500 federal credit, that is until the 200,000th plug-in is sold in the US. At that time, and so as not to disrupt/confuse those buying the EVs, the full $7,500 continues through the end of the current quarter and to the completion of the next quarter.