Does the Honda Clarity plug-in hybrid qualify for tax credits?
Yes, the Honda Clarity Plug-In Hybrid is eligible for federal tax credits of up to $7,500 in the United States. This tax credit is available for qualified plug-in electric vehicles, including the Clarity Plug-In Hybrid, to help promote the adoption of eco-friendly transportation options.
Eligibility for Federal Tax Credits
The federal tax credit for plug-in electric vehicles, including the Honda Clarity Plug-In Hybrid, is part of the Qualified Plug-In Electric Drive Motor Vehicle Credit program. This credit is available for vehicles that meet certain requirements, such as having a battery capacity of at least 4 kilowatt-hours and being primarily powered by an electric motor.
The amount of the tax credit depends on the battery capacity of the vehicle, with a maximum credit of $7,500 for vehicles with a battery capacity of at least 16 kilowatt-hours. The Honda Clarity Plug-In Hybrid has a battery capacity of 17 kilowatt-hours, making it eligible for the full $7,500 tax credit.
Claiming the Tax Credit
To claim the federal tax credit for the Honda Clarity Plug-In Hybrid, eligible buyers must file IRS Form 8936 with their federal income tax return. The credit is non-refundable, meaning it can only be used to offset the buyer's tax liability for the year the vehicle was purchased.
It's important to note that the tax credit is subject to phase-out once a manufacturer sells 200,000 eligible vehicles in the United States. As of 2025, Honda has not yet reached this threshold, so the full $7,500 tax credit is still available for the Clarity Plug-In Hybrid.
Additional State-Level Incentives
In addition to the federal tax credit, some states and local governments offer additional incentives for the purchase of plug-in hybrid vehicles like the Honda Clarity Plug-In Hybrid. These incentives can include state tax credits, rebates, or other financial benefits that can further reduce the cost of ownership for eligible buyers.
Prospective buyers should research the available incentives in their local area to determine the full potential savings when purchasing a Honda Clarity Plug-In Hybrid.
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.
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.
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.
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.
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.
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.
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.
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 |
