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Macro: Biden looks to shift Uncle Sam to electric autos
Micro: Kia, Ford & Porsche models make tax credit list

March 5, 2021
Joe Biden in his 1967 Corvette Stringray_Adam Schultz via Flickr-resized

President Joe Biden's heart may belong to his 1967 classic Corvette Stingray, but he's working to make Uncle Sam's 600,000 automotive fleet electric. (Photo by Adam Schultz via Flicker)

Much of the focus on the new White House understandably has been on President Joe Biden's COVID-19 relief package.

But Biden also has been pushing his alternative energy plans, specifically a move to electric vehicles (EVs).

Just days after his inauguration, he vowed to replace the bulk of the federal government's fleet of vehicles with made-in-America EVs.

On Tuesday, March 2, Biden met virtually with executives in the EV charging infrastructure field to advance his Administration's goal of building more than 500,000 new electric vehicle charging stations by 2030.

That looks more doable, since that same day a coalition of six electric utilities also announced they plan to build a "seamless network of charging stations" near major highways in every southern state, as well as in Indiana and Ohio.

Electric vehicle charging station network plans_dadfdaf

Image courtesy American Electric Power

Meanwhile, the private sector is charging ahead, too. General Motors has set a goal of making the vast majority of its vehicles electric by 2035.

More EVs added to tax credit list: Then there's the tax code. A tax credit worth a maximum $7,500 is still available for purchasers of a variety EVs. In fact, additional cars in the Kia, Ford and Porsche lines were just added to the tax break list.

The Internal Revenue Service says the 2021 Kia NIRO EV and the 2021 Kia Niro plug-in hybrid now qualify for alternative energy tax breaks. The credit for the NIRO could be the maximum $7,500. The Kia hybrid could net buyers a maximum of $4,543.

Another plug-in hybrid, this one from Ford, also now is on the EV tax credit list. The 2021 Escape's recommended manufacturers retail price tag could be offset by a maximum credit of $6,843.

And if you're in the market for a luxury nameplate, check out Porsche's new tax credit eligible EVs. The automaker's 2021 Taycan 4S EV, Taycan Turbo EV and Taycan Turbo S EV each could produce a credit of $7,500 for buyers.

Not around forever: This tax break has been around for years, but it's already been phased out for a handful of the most popular alternative fuel autos. Yes, you no longer get tax help in buying a Tesla or GM EVs.

The reduction of and ultimate end of the tax credit kicks in once a manufacturer sells at least 200,000 qualifying vehicles in the United States.

You can see which ones have hit that mark or are close, as well as take a look at the full range of qualifying vehicles and their potential EV credit amounts at the IRS' special Qualified Plug-In Electric Drive Motor Vehicle Credit web page.

You also might find these items of interest:

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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