The federal EV tax credit is a financial incentive designed to encourage the adoption of electric vehicles (EVs) by reducing the tax burden on purchasers. As of 2024, eligible new EV buyers can claim a credit of up to $7,500, depending on factors such as the vehicle's battery capacity and the manufacturer's production volume. This credit directly reduces the amount of federal income tax owed, making electric vehicles more accessible and affordable for consumers. It is essential for potential buyers to verify their vehicle's eligibility, as the tax credit has specific criteria that may change based on legislation and market conditions.