Revamp in Massachusetts Electric Vehicle Rebate Program, MOR-EV, Brings Changes. Electric vehicle owners could receive up to $5,000 in rebates. At present, Massachusetts residents who own or lease a battery electric vehicle costing under $55,000 are eligible for a $3,500 rebate. It is important to pay attention not only because of the discount, but also because of the importance it may have on the tax.
For plug-in hybrids priced below $50,000, a $1,500 rebate is offered. Claiming the rebate requires submitting an application within 90 days of the vehicle’s purchase. Effective July 1, Numerous Changes to be Implemented, says Department of Energy Resources (DOER) Final Hours: Claim Direct Payments from $150 to $700 for Americans. Let’s take a look at how the tax and refund can impact your pocketbook.
Where the tax credit applies and where it does not apply
The first significant change will enable buyers to deduct the rebate amount from the car’s price, greatly benefiting those unable to wait for reimbursement. Additionally, a $1,500 “adder” will be introduced for low-income drivers. While the income criteria are yet to be determined, qualifying individuals will receive the $3,500 base rebate along with the $1,500 adder, totaling $5,000 in savings.
The DOER states that drivers “trading in a non-electric vehicle with a market value featuring an internal combustion engine” will be eligible for this incentive. However, some changes may not favor residents, as plug-in hybrids will no longer qualify for rebates.
The Inflation Reduction Act, effective since January 1, introduced multiple electric vehicle rebates. Individuals with adjusted gross incomes of $150,000 or less can receive up to $7,500 in rebates, with the limit increasing to $225,000 for head-of-household filers and $300,000 for joint filers.
The tax break does not apply to vans, SUVs, or pickup trucks costing over $80,000. Other vehicles have a $55,000 price cap. Rebates of up to $4,000 are available for used vehicles priced at $25,000 or less. The car must be at least two years old, and the credit is only valid for the vehicle’s first sale.
To qualify for the rebate, consumers must have a modified adjusted gross income below $150,000 for married couples or $75,000 for single filers.