How to Save up to $7,500 on an Audi
The federal government currently encourages car buyers to opt for electric vehicles (EVs) through its tax incentive program. It’s possible to earn up to $7,500 as a non-refundable tax credit on some EV and hybrid models, including Audi. Read on to find out what the tax credit is, what Audi models have it, and how you can take advantage of it.
What is the federal tax credit on EVs?
The federal tax credit on EVs is designed to encourage EV use, which will reduce greenhouse gas emissions over the long term. Along with state incentives, it has encouraged many consumers to purchase their first EV, thus boosting the market. This credit may expand over time, as some plans are currently in place, which may increase the maximum to $12,500.
In terms of the exact amount you’ll receive, it varies depending on the model. Some models and brands are ineligible for the credit. According to the IRS, only the first 200,000 EVs or hybrids sold by a manufacturer are eligible. For models included in it, the amount will vary depending on the battery. The base amount for the credit is $2,500. A 5 kWh battery will increase this by $417, and for every kWh above this, it will add $417—the amount caps at $7,500.
There are also a few other fine print limitations that may change your eligibility or amount. According to Electrek, if the tax credit is above the amount you pay for your annual taxes, you won’t get the remainder. The credit can pay your taxes, but it can’t pay more than your taxes. Also, the tax credit only applies to new vehicles– you can’t purchase a used EV.
Audi models that are eligible for the credit
Audi began its venture into EVs for the 2017 model year when its first e-tron models hit the market. E-trons still exist today in multiple versions, including an SUV and a Sportback. Audi has also created a few different hybrid models.
While they’ve had limited efforts in the EV realm so far, Audi plans to change this in due time. An article from Automotive News Europe states that Audi’s CEO plans to have 20 all-electric models by 2025. The company also has plans to go entirely electric, which will carry out over the next decade.
As for the cars eligible for the tax credit, its all-electric 2021 e-tron Sportback will get you the full $7,500. The EV has up to 402 hp and can reach a top speed of around 124 mph. It can also accelerate from 0-60 mph in about 5.5 seconds. It has a 218-mile range on a full charge.
Similar to this is the 2021 e-tron SUV, which has the same technical specs as the Sportback for the most part, including the hp and the acceleration. It does, however, have a greater range of 222 miles thanks to its 432-cell battery. The SUV is also eligible for the full $7,500.
Two of Audi’s 2021 Quattro models are also eligible for the tax credit, both of which will get you $6,712. These include the A8 L 60 TFSI e Quattro and the Q5 55 TFSI e Quattro. The first model, the A8, has a maximum of 335 hp thanks to its 3.0-liter six-cylinder engine. It has a top speed of 130 mph and reaches 0-60 mph in about 5.6 seconds.
The second model, the Q5, has a max of 261 hp and a 2.0 -liter four-cylinder engine. It can reach a top speed of 130 mph like the A8 and accelerates from 0-60 mph in 5.7 seconds.
How to take advantage of the credit
To claim the federal EV tax credit, you’ll need to include it on your tax return for the year you purchased the vehicle. The IRS has a dedicated form for this, which is Form 8936. If you follow the instructions on it, you’ll be able to calculate your amount and see how much you’ll save on your taxes.