Eligibility for Federal EV Tax Credit

The Subaru Solterra, an electric SUV, does not currently qualify for the $7,500 federal EV tax credit when purchased. This is because the Solterra is manufactured overseas, which makes it ineligible for the credit. However, leasing the Solterra through Subaru Motors Finance could make the credit available, as the term “owner” encompasses both purchasers and lessees.

2024 Solterra Upgrades and Pricing

The 2024 Solterra has received several upgrades, including faster charging capabilities and an upgraded steering wheel with regenerative braking switches. Despite these enhancements, the starting price of the 2024 Solterra remains unchanged at $46,340 (including destination fee). Three trim levels are available: Premium, Limited, and Touring, with the Touring trim featuring premium amenities such as a panoramic sunroof.

Mileage and Fuel Economy

The 2024 Solterra has an EPA-estimated range of 227 miles on a single charge. The Limited and Touring models have a slightly reduced range of 222 miles.

Understanding EV Tax Credits

Eligibility Requirements

To qualify for the federal EV tax credit, an electric vehicle must meet the following criteria:

• Assembled in the United States
• Meet minimum battery capacity requirements
• Be purchased by a taxpayer who meets income limits

How to Claim the Credit

If you qualify for the EV tax credit, you can claim it on your federal income tax return using Form 8936. The credit is applied directly to your tax liability, reducing the amount of taxes you owe.

Benefits of Leasing a Solterra

Potential Tax Credit Eligibility

Leasing the Solterra through Subaru Motors Finance may make you eligible for the $7,500 federal EV tax credit.

Lower Upfront Costs

Leasing typically requires a lower down payment compared to purchasing a vehicle. This can make it more affordable to get behind the wheel of a new Solterra.

Flexibility

Leases typically have shorter terms than loans, giving you more flexibility if your needs change. You can choose a lease term that works for your budget and lifestyle.

Considerations for Leasing

Mileage Restrictions

Leases typically have mileage restrictions, which can limit how much you can drive the vehicle each year. Exceeding the mileage limit could result in additional charges.

Wear and Tear

You are responsible for any excessive wear and tear to the vehicle during the lease term. This can include damage to the interior, exterior, or mechanical components.

Early Termination Fees

If you need to terminate your lease early, you may be subject to early termination fees. These fees can be significant, so it’s important to factor them in when considering a lease.

Does the Subaru Solterra qualify for the federal EV tax credit?

At the time of purchase, the Subaru Solterra does not qualify for the federal EV tax credit as it is manufactured overseas. However, leasing the Solterra through Subaru Motors Finance may make the credit available as the term “owner” encompasses both purchasers and lessees.