Every electric car has a listed price. But most also have an effective price — that is, what you pay after taking into account all the federal and state tax credits meant to encourage you to go electric.
The Nissan LEAF has long been one of America’s least expensive electric vehicles (EVs) by list price. But the 2024 LEAF, with its $28,140 sticker price, isn’t always the cheapest EV you can buy. That’s because, until now, it hasn’t qualified for federal EV tax credits.
Late yesterday, it qualified. Partially.
Nissan says the company “has been able to certify that 2024 LEAF vehicles produced in the U.S. meet the ‘battery component’ requirements of the Inflation Reduction Act of 2022 and may now qualify for the $3,750 tax credit. The LEAF and its battery are assembled in Smyrna, Tennessee.”
Just Half the Credit
If you’ve been shopping for an EV, you may know that $3,750 is just half the full tax rebate .
Federal law grants half the credit if the battery is assembled in North America. It allows the other half only if that EV uses critical minerals mined in the U.S. or certain trade partner countries.
Nissan’s announcement suggests the LEAF meets the threshold for half because the battery is built in Tennessee, but it doesn’t meet the “materials” half.
That complicates the price calculation for some shoppers. The Chevrolet Bolt EV, for instance, carries a sticker price of $26,500. That’s not far from the LEAF’s starting price. But the Bolt qualifies for the full $7,500 discount. That makes it effectively cheaper.
Some States Have Discounts
We hate to complicate matters further. But shoppers should consider two more factors as they look at EV prices.
One is that many states have their own rebate programs with their own rules. Some of those can take additional thousands off the purchase price.
Federal Credit Changing Soon
The other is that the EV rebate system changes significantly on Jan. 1, 2024. Today, it’s a true rebate. Buyers must pay for the car (or take on a loan to pay for the car) and claim the rebate the next time they file their taxes.
Starting Jan. 1, shoppers won’t have to wait. They can transfer it to the dealer as a down payment instead. Depending on your financial situation, that might make waiting to buy a better move.
