If you are looking into purchasing a Ferrari, you probably wouldn’t mind finding out how to save a little money on the purchase. One way to save money when buying a car through tax credits for all-electric and plug-in hybrid vehicles. Since Ferrari is dipping its toes into the EV market, you can save over $3,000 if you purchase a 2021 SF90 Ferrari Stradale. Currently, the Stradale is the only Ferrari eligible for the tax credit, but the Ferrari 296 GTB is the automaker’s next hybrid, although a US delivery date hasn’t been given yet.
What is the federal tax credit for EVs and PHEVs?
Starting in 2010, the IRS began offering a tax credit for eligible all-electric or plug-in hybrid vehicles. Eligible vehicles have to be new and purchased after December 13, 2009 in the US, and the tax credit amount is based on the vehicles battery capacity. A vehicle has to have an external charging source and a battery capacity of at least 4 kWh to be eligible. The base credit is $2,500, and all eligible vehicles qualify for that. Additionally, for each kWh above 4 kWh, $417 per kWh, up to $5,000, is added, making the maximum credit $7,500.
Even if you have a vehicle that seems to qualify, you might not be able to get the tax credit due to some fine print. According to Electrek, some vehicles no longer qualify because of a predetermined sales threshold. If a certain manufacturer has sold over 200,000 qualifying vehicles, the credit begins to phase out. Currently, General Motors and Tesla vehicles no longer qualify for the tax credit if purchased after March 31, 2020 and December 31, 2019, respectively, according to fueleconomy.gov, the official U.S. government source for all things related to fuel economy, which maintains the list of eligible vehicles.
The 2021 SF90 Ferrari Stradale is eligible for the tax credit
Debuting in 2020, the Stradale is Ferrari’s first plug-in hybrid, and the company is promising two more combinations, the previously mentioned 296 GTB and the first-ever Ferrari SUV, the Purosangue, being promised for 2022. The SF90 has a twin-turbo 4.0-liter V8 that puts out 769 hp and 590 lb-ft of torque and is paired with three electric motors. One sits between the engine and the eight-speed dual-clutch automatic transmission and produces 157 hp and 196 lb-ft of torque. The other two electric motors are mounted on the front axle, each powering the front wheels and producing a combined 97 hp and 62 lb-ft of torque. Altogether, 986 combined horsepower gives the Stradale a reported 0-60 mph speed of two seconds.
The batteries provide 15 miles of all-electric driving, and there are four different driving modes: Performance, Hybrid, Qualifying, and eD (electric drive). Hybrid and eD are pretty self-explanatory, and Performance mode uses only the V8 and recharges the battery. The qualifying mode uses every drop of power the V8 and the three electric motors have. And as a bonus, due to the different driving modes and motor configurations, you can switch between rear-wheel, all-wheel, and front-wheel drive.
How can you take advantage of this credit?
As with most tax credits, you claim it on your yearly tax return. The credit is deducted from whatever your tax obligation is that year, so if you owe less than the available credit, you will not be able to claim the whole thing. For example, if you owe $2,000 in taxes, and you purchase the Stradale, you will only be able to claim $1,501 since the available credit for the Stradale is $3,501. To claim the credit, you will need to file IRS Form 8936, and provided you don’t have any questions and can complete the form, it is pretty straightforward. If you have to seek out the instructions from the IRS, it might get confusing since the IRS directions can be slightly unclear at times.
A Ferrari is not cheap, and the SF90 Stradale is one of the more expensive ones, so anything that will save a few bucks will be a good thing.
If you are unsure whether you can claim the tax credit or have questions on filling out the form, it is best to speak with a tax professional.