The End of the Chevrolet Volt Tax Credit?

Please Note: The following content is not tax advice, nor am I qualified to give tax advice. Please consult your tax advisor to determine your eligibility – or your vehicle’s eligibility – for any federal or state tax credits.

In 2011, several months after its introduction in 2010, the Chevrolet Volt had one big selling point going for it – aside from being nothing short of a revolutionary vehicle that features revolutionary technology. New Volt buyers enjoyed up to a $7,500 federal tax credit.

That was nearly seven years ago. Today, more and more frequently, we Chevy dealers are getting asked, “Do this year’s models still get that federal tax credit?”

According to irs.gov, the 2016 and 2017 Chevrolet Volts qualify for between a $2,500 and $7,500 tax credit under Section 30D(a). You will have to consult with your tax professional as to whether or not you qualify to receive that tax credit. And just so you know, the IRS form used to claim the credit is Form 8936.

As for individual states, consult this guide from chevrolet.com for your particular tax laws.

All good things must come to an end, and here’s what you need to watch carefully if you’re considering the Chevrolet Volt and drooling over what could amount to a heavy discount. Irs.gov states, “The credit begins to phase out for a manufacturer, when that manufacturer sells 200,000 qualified vehicles.” In other words, when General Motors’ total sales of electric vehicles reach 200,000 nationwide, the tax credit will begin to be whittled down.

The tricky bit is that General Motors currently has 3 qualifying vehicles on the market: the Chevrolet Volt, but also the Cadillac ELR and the Chevrolet Spark EV. In the next few months dealerships will be taking delivery of the highly-anticipated Chevrolet Bolt EV crossover/SUV.

As of August of 2016, Volt sales are at 100,965 and 2,857 Cadillac ELR units have been sold. Total sales figures for the Spark EV, introduced in mid-2012, were not readily available as of this writing. Between these three vehicles and the soon-to-be-released Chevrolet Bolt, that 200,000 mark could be just around the corner. At that point, I anticipate an explosion in demand from people trying to buy any of the four available GM “EVs” before the IRS implements its tax credit phase-out.

So here is a bit of advice from me speaking as a sales + leasing consultant: if you’re seriously considering a Chevy Volt, get ahead of the curve. And even if you don’t buy from me, get in touch and I’ll give you all the information you need to make certain that the Volt is right for you so you can get ahead of that curve confidently.