2 Jun 23

United States EV leases up on IRA tax credits

United States EV leases up on IRA tax credits

Electric vehicle (EV) leasing is on the rise in the United States as buyers take advantage of tax credits provided by the US federal government’s Inflation Reduction Act (IRA).

Although IRA guidelines state that EVs with assembly or battery minerals sourced outside the U.S. or its free trade partners do not qualify for IRA tax credits, vehicles that are leased rather than purchased outright are still eligible as it is treated as a commercial business transaction.

According to Jose Munos who is CEO of Genesis North America, the automaker is more focused on EV leases these days. “Since the start of 2023, we have increased from 5% leasing to approximately 30%,” Automotive News reported the executive as saying.

Many automakers have been reported to be announcing leasing incentives aimed at benefiting customers by lowering the cost of EVs and boosting vehicle sales. Besides Hyundai, among them are Ford, Kia, Mercedes, and Volkswagen.

Photo (copyright: Shutterstock)


Authored by: Daniel Bland