The 2026 EV Tax Credit, Explained for Lessees

Under current IRS guidance, the commercial clean vehicle credit (Section 45W) applies to leased vehicles regardless of final assembly location or battery sourcing rules. That means the dealer/lessor can claim $7,500 and pass it through as a capitalized cost reduction on your lease.

Not every brand passes the full amount — Hyundai, Kia, Genesis, and Audi typically pass 100%. Tesla and Porsche pass on most models. Always ask your broker for the cap-cost-reduction line on the lease worksheet. If you don't see $7,500 there, the credit was retained by the lessor.