Does the Honda Clarity plug-in hybrid qualify for tax credits?
The Honda Clarity Plug-In Hybrid is a popular choice for drivers looking to reduce their carbon footprint while enjoying the convenience of a hybrid vehicle. One of the most common questions potential buyers ask is whether this vehicle qualifies for federal or state tax credits. In this article, we’ll explore the eligibility of the Honda Clarity Plug-In Hybrid for tax incentives and what you need to know to take advantage of them.
Understanding Federal Tax Credits for Plug-In Hybrids
Federal tax credits are designed to encourage the adoption of environmentally friendly vehicles, such as plug-in hybrids and fully electric cars. These credits are part of the Qualified Plug-In Electric Drive Motor Vehicle Credit program, which provides financial incentives to buyers of eligible vehicles.
The Honda Clarity Plug-In Hybrid qualifies for a federal tax credit of up to $7,500. This amount is determined by the vehicle's battery capacity and other factors. The Clarity’s 17 kWh battery meets the requirements for the maximum credit, making it an attractive option for those looking to save on their taxes while driving a greener car.
State and Local Incentives
In addition to federal tax credits, many states and local governments offer their own incentives for purchasing plug-in hybrid vehicles. These can include rebates, tax credits, reduced registration fees, and access to carpool lanes. The availability and amount of these incentives vary by location, so it’s important to check with your state’s Department of Motor Vehicles or energy office for specific details.
Steps to Claim Your Tax Credit
If you’ve decided to purchase a Honda Clarity Plug-In Hybrid, here’s how you can claim your federal tax credit:
- Ensure that the vehicle is purchased new, as the credit is not available for used vehicles.
- Obtain a copy of IRS Form 8936, titled "Qualified Plug-In Electric Drive Motor Vehicle Credit."
- Fill out the form with the required information, including the make, model, and battery capacity of your vehicle.
- Include the completed form with your federal tax return for the year in which you purchased the vehicle.
- Consult a tax professional if you have questions or need assistance with the process.
Important Considerations
While the Honda Clarity Plug-In Hybrid qualifies for the federal tax credit, there are a few important points to keep in mind:
- The tax credit is non-refundable, meaning it can only be used to offset your tax liability. If you owe less than the credit amount, you will not receive the difference as a refund.
- Tax credits are subject to phase-out as manufacturers reach a certain sales threshold. However, as of now, Honda has not reached this limit, so the full credit is still available.
- State and local incentives may have their own eligibility requirements and deadlines, so act quickly to take advantage of them.
Conclusion
The Honda Clarity Plug-In Hybrid is an excellent choice for environmentally conscious drivers, and its eligibility for federal and state tax credits makes it even more appealing. By taking advantage of these incentives, you can reduce the overall cost of ownership while contributing to a cleaner environment. Be sure to consult with a tax professional and check local regulations to maximize your savings.
Frequently Asked Questions
Does Honda Clarity plug in hybrid qualify for tax credit?
All purchasers of a new Clarity Plug-In Hybrid are eligible for up to a $7,500 tax credit through federal tax credit programs.
Do plug-in hybrids qualify for tax credits?
Due to toughening requirements on which countries vehicle components are from, more vehicles qualified in 2024 than will qualify in 2025. But you may still be able to take advantage of the credit if you lease an EV instead of purchasing it. Plug-in hybrids may qualify for the tax credit, but regular hybrids will not.
Which EVs are eligible for $7500 tax credit?
Which EVs and PHEVs Are Eligible for a Federal Tax Credit?
| Model Year/Vehicle | Credit Available | Retail Price Cap |
|---|---|---|
| 2023-25 Ford F-150 Lightning EV | $7,500 | $80,000 |
| 2025 Genesis Electrified GV70 EV | $7,500 | $80,000 |
| 2024-25 Honda Prologue EV | $7,500 | $80,000 |
| 2025 Hyundai Ioniq 5 EV | $7,500 | $80,000 |
What Honda vehicles qualify for EV tax credit?
The EV Tax Credit
This federal credit applies to most of the 2024 Honda Prologues, specifically the vehicles that were manufactured after February 26, 2024. However, all 2024 Prologues will be included in the tax credit upon leasing.
Is Honda discontinuing the Clarity Plug-In Hybrid?
After discontinuing the EV model of the Clarity last year, Honda has decided to discontinue the remaining fuel-cell and plug-in-hybrid models after the 2021 model year.
Is the Honda Clarity plug in hybrid any good?
plug-in hybrid options. By far the best choice is the Honda Clarity, and we even like it better than the Volt. It gets about the same electric range (about 47 miles) and total range (400 miles), but it is way more spacious and comfortable. The tech is impressive, The seats are incredibly comfortable.
What is the tax credit for the Honda Accord plug-in hybrid?
Federal Electric Vehicle Tax Credit: Up to $7,500 tax credit for the purchase of a new qualified plug-in electric drive motor vehicle, including certain hybrid models. Alternative Fuel Infrastructure Tax Credit: A tax credit for 30% of the cost, up to $30,000, for installing alternative fuel vehicle refueling property.
Are plug-in hybrids eligible for tax credits?
Federal tax credits are available for the purchase of all-electric and plug-in hybrid vehicles. The tax credits are up to $7,500. Please note: Sales or use tax is due on the total selling price of the vehicle.
What is the best plug-in hybrid car?
Best Plug-In-Hybrid Sedans
- 2025 Toyota Prius PHEV. $34,510. EPA MPG. 48–52 combined.
- 2025 Mercedes-Benz S-Class. 9.5. $118,900. EPA MPGe. 51 combined.
- 2025 Porsche Panamera Turbo E-Hybrid / Turbo S E-Hybrid. 9.5. $192,995. EPA Est. Range. N/A.
Does Honda Clarity qualify for tax credits?
All purchasers of a new Clarity Plug-In Hybrid are eligible for up to a $7,500 tax credit through federal tax credit programs.
