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Massachusetts EV Tax Credits For 2023

Understanding the current federal, Vermont, New Hampshire, and Massachusetts EV tax credit laws is crucial when buying or leasing an electric vehicle in our corner of the United States. Qualified vehicles may be eligible for up to $7,500 in federal tax credit and other available state credits and rebates.

Federal Electric Vehicle Tax Credit for 2023

Due to the Inflation Reduction Act of 2022, current federal laws state that you may qualify for a credit of up to $7,500 if you purchase a new, eligible plug-in electric vehicle (PHEV) or fuel cell electric vehicle (FCEV).

X60 Hybrid charging in a showroom

2023 Massachusetts EV Tax Credit

Massachusetts strives to make electric vehicles more affordable through its MA EV tax credit program, MOR-EV. This program aims to provide more equitable access to the available Massachusetts electric vehicle tax credit.

To qualify for the current Mass EV rebate, you can purchase or lease new models of eligible light, medium, and heavy-duty battery electric vehicles (BEVs) or FCEVs. As of August 2023, an additional rebate may be available to Massachusetts residents who meet certain income requirements and participate in select approved programs. The Massachusetts EV rebate 2023 no longer applies to plug-in hybrid vehicles purchased after June 30, 2023.

Can You Get EV Tax Credits for a Used Car?

If you’re looking to reduce taxes with the used EV tax credit, 2023 is a great year to make that happen. Federal law currently states that qualified used vehicles with a sale price of $25,000 or less may be eligible for a used clean vehicle tax credit if the purchase was made during 2023.

For Massachusetts residents and businesses, the tax credit also extends to the purchase of eligible used light-duty BEVs and FCEVs. Learn more about current Massachusetts EV incentives for used car purchases and leases from the Volvo Cars Pioneer Valley finance team.

Can You Get EV Tax Credits if You Lease?

Some leased vehicles may qualify for certain tax credit programs – for example, many vehicles are eligible for the Massachusetts EV tax credit with a 36-month lease under MOR-EV.

You may also be able to take advantage of tax incentives through an EV leasing tax loophole. In some cases, vehicles that wouldn’t qualify for rebates when purchased may qualify when leased because they’re considered commercial vehicles – however, the tax credit goes to the lessor (the dealership), not the lessee (the customer). You’ll only benefit if the dealer is willing to pass their tax savings on to you with a reduced leasing price or a rebate.

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What Local State Incentives Are Available for Electric Volvo Vehicles?

 

Massachusetts: $5,000

MOR-EV is a Massachusetts program that issues rebates of up to $5,000 to EV drivers for the purchase or lease of fuel-cell and battery electric vehicles. The MOR-EV program includes purchases or leases of eligible BEV and FCEV vehicles, eligible new light, medium, and heavyweight trucks, and eligible used car purchases.

 
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Vermont: $10,000

The Drive Electric Vermont program offers a variety of incentives for eligible electric vehicles, bikes, motorcycles, lawn equipment, and more. Current Drive Electric Vermont incentives offer up to $5,000 for eligible purchases of electric vehicles and an additional $5,000 through the Replace Your Ride program.

 
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New Hampshire: $1,000

The New Hampshire Electric Co-op offers rebates of up to $1,000 to eligible NHEC members who lease or buy a qualifying electric vehicle or electric motorcycle. This program also offers incentives for installing new electric vehicle charging stations.

 
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X60 Hybrid charging in a showroom

Volvo XC40 Recharge

Starting MSRP: $53,990


EPA Estimated Range for Volvo XC40 Recharge2
208 Miles


0-60MPH Time
4.7 Seconds


Pure Power
402 Horsepower

Benefits Of Driving An Electric Vehicle In Western Massachusetts

FUN

Volvo electric motors smoothly deliver instant torque providing powerful and instant acceleration.

ZERO FILL UPS

Charge at home, work, or one of the growing number of charging stations, but you don’t need to fill up ever again.

COST

Over time, electric vehicle models typically cost less to maintain and drive compared to gas‑powered. No need to spend money on gas and routine oil changes adds up over the life of the vehicle.

 

REDUCED EMISSIONS

Battery Electric (BEV) vehicles have zero tailpipe emissions.

QUIET RIDE

When you drive a Volvo electric vehicle, you benefit from a quiet, smoother ride.

EASY TO MAINTAIN

Electric vehicles don’t require the same maintenance as gas‑powered models, there will be zero oil changes in your future, and no need to worry about things like transmission fluid maintenance.

We Deliver To Anywhere In New England!

 

Frequently Asked Questions

How do I get the Federal EV Tax Credit for my Volvo Electric Vehicle?

After you purchase one of the 2023 cars that qualify for EV tax credit, you can submit IRS Form 8936 to determine and claim your credit of up to $7,500. A Volvo S60 T8 Recharge Extended Range may qualify for a tax credit if it was put into service before April 18, 2023.1

What does up to $7,500 mean for the Federal EV Credit?

The qualified plug-in electric drive motor vehicle credit is a nonrefundable federal tax credit of up to $7,500. You cannot receive more money in credit than you owe in taxes or apply excess credit to future tax years. Consult a tax professional to see how the tax credit applies to your financial situation. A dealership can also help you determine whether your vehicle qualifies.

What other credits are available when you purchase an electric vehicle?

We have listed a few of the state-level available credits above, like the Massachusetts EV rebate for 2023, to help provide tax credit and rebate guidance for your specific location. To leverage every available federal and state tax offer for your 2023 purchase or lease, you can check here to learn more about current EV state laws and incentives.

What Volvo vehicles qualify for the Federal Tax Credit?

A Volvo S60 T8 Recharge Extended Range may qualify for the 2023 federal tax credit for plug-in electric and fuel cell electric vehicles, but only if put into service before April 18, 2023.1 While other Volvo models do not currently qualify for the federal tax credit, we do offer a wide range of great electric vehicle options, and we expect to add more electric models in the future.

Should I lease or purchase an electric vehicle?

Vehicles that are not eligible for the full tax credit when purchased can still yield savings through the EV leasing tax loophole. Since leased models are considered commercial vehicles, a dealership may qualify for a tax credit as the lessor. Many dealerships are willing to pass these savings on to their customers in the form of rebates or more favorable leasing terms.

Does the Volvo XC40 qualify for tax credit?

While the 2021 Volvo XC40 crossover SUV did qualify for federal tax credits, the new tax credit law states that the 2023 model is no longer eligible for federal credit. If the assembly location of the Volvo XC40 is moved to North America, the vehicle could once again become eligible. You may still be able to receive tax incentives for purchasing a used Volvo electric vehicle.

[1] Tax Credit Info: The model year 2023 S60 T8 Plug-in Hybrid may qualify you for a US Federal Tax Credit.​ Eligibility for income tax credits depends on your personal tax situation. For further details, visit the Internal Revenue Service’s page on Plug-In Electric Drive Vehicle Credit (IRC 30D) and refer to IRS Form 8936. Your state may also offer additional benefits for the purchase of qualifying vehicles. Visit the U.S. Department of Energy’s website and your state program’s website for the most up-to-date information on availability and redemption requirements. Government incentives are outside of Volvo control and are for informational purposes only. These incentives are subject to change without notice. Please note that this is not tax advice. Volvo encourages consulting with your tax, financial, or legal advisor for further details and to determine your eligibility for these tax incentives.

[2] This is an electric vehicle. Since electricity is not measured in gallons, a conversion factor is used to translate the fuel economy into miles per gallon of gasoline equivalent (MPGe). EPA-estimated 85 city/72 highway/ 79 combined MPGe. Use for comparison purposes only. Your MPGe will vary for many reasons, including but not limited to, driving conditions, how and where you drive, how you maintain your vehicle battery-package/condition, and other factors. For more information, including information on MPGe, see www.fueleconomy.gov.

Learn More About Volvo Electric Tax Rebates

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