Electric Car Tax Credit 2017 Chevy Volt Guide to Savings

The 2017 Chevy Volt qualifies for the full $7,500 federal electric car tax credit, making it one of the most affordable plug-in hybrids on the market. Buyers must purchase (not lease) the vehicle and claim the credit when filing taxes, with eligibility based on income and tax liability. Don’t miss this chance to save big on a fuel-efficient, eco-friendly ride.

Key Takeaways

• Qualify for $7,500: Claim the full federal tax credit for 2017 Chevy Volt purchases.
• Check state incentives: Combine federal credit with local rebates for greater savings.
• Act before phaseout: Credits decrease after manufacturer sells 200,000 eligible EVs.
• New purchases only: Used Chevy Volts don’t qualify for the federal tax credit.
• File IRS Form 8936: Required to claim the credit when filing taxes.

The Electric Car Tax Credit 2017 Chevy Volt: Your Ticket to Smarter Savings

Imagine driving a sleek, fuel-efficient car that not only saves you money at the pump but also puts cash back in your pocket through a federal tax credit. That’s exactly what the 2017 Chevy Volt offers, and it’s a deal worth exploring if you’re considering a shift to electric or hybrid driving. Whether you’re a first-time EV buyer or a seasoned green commuter, the idea of combining environmental benefits with real financial incentives is hard to ignore.

Back in 2017, the Chevy Volt wasn’t just another plug-in hybrid—it was a standout choice in a growing market. With an all-electric range of 53 miles and a gas engine that extends your journey up to 420 miles, it struck a perfect balance between practicality and innovation. But what really sweetened the deal? The federal electric car tax credit, which could knock thousands off your tax bill. If you bought or leased a 2017 Chevy Volt, you likely qualified for a credit of up to $7,500. That’s not just a discount—it’s a smart investment in your future, your wallet, and the planet.

What Is the Federal Electric Car Tax Credit?

The federal electric car tax credit, officially known as the Plug-In Electric Drive Vehicle Credit, was established under the Energy Policy Act of 2005. It’s designed to encourage Americans to adopt cleaner, more efficient vehicles by offering a direct reduction in federal income tax liability. Think of it like a reward for choosing a greener lifestyle—no strings attached, just a straight-up credit when you file your taxes.

How the Credit Works

The credit isn’t a rebate or cash back. Instead, it reduces the amount of federal tax you owe. For example, if you owe $5,000 in federal taxes and you qualify for a $7,500 credit, your tax bill drops to zero. The remaining $2,500? Unfortunately, it doesn’t roll over or get refunded. The credit is nonrefundable, meaning you can’t get more back than you paid in taxes for the year.

Here’s a real-life example: Sarah bought a 2017 Chevy Volt in March 2017. She owed $6,200 in federal taxes that year. After applying the $7,500 tax credit, her tax liability dropped to $0. She didn’t get a $1,300 refund, but she saved every dollar she would’ve paid—and then some.

Eligibility Requirements

To qualify for the credit, you must meet a few key criteria:

• Vehicle must be new: The car must be purchased new, not used or leased from a dealership.
• Primary use in the U.S.: The vehicle must be driven primarily within the United States.
• Tax liability requirement: You must have enough tax liability to use the credit. If you owe less than $7,500 in federal taxes, you can only claim up to that amount.
• Ownership requirement: You must own the car, not lease it, to claim the full credit. (More on leasing below.)

It’s also worth noting that the credit applies per vehicle, not per person. So if you and your spouse each buy a qualifying EV in the same year, you could potentially claim up to $15,000 in total credits—assuming you have the tax liability to support it.

Why the 2017 Chevy Volt Qualified

The 2017 Chevy Volt qualified for the full $7,500 credit because it met the U.S. Department of Energy’s battery capacity and vehicle efficiency standards. Specifically:

• The Volt’s battery pack had a usable capacity of 14.5 kWh.
• It achieved an EPA-estimated 106 MPGe (miles per gallon equivalent) in electric mode.
• It was certified as a plug-in hybrid electric vehicle (PHEV) with a minimum all-electric range of 20 miles.

Chevy’s Volt was one of the few vehicles at the time that offered both a long electric range and a practical gas backup, making it a favorite among urban commuters and road-trippers alike.

How the 2017 Chevy Volt Stacks Up Against the Tax Credit

When the 2017 Chevy Volt hit the market, it wasn’t just competing on performance—it was competing on value. With a starting MSRP of around $33,220 (before incentives), the Volt was already more affordable than many full-electric vehicles. But when you factored in the $7,500 federal tax credit, the effective price dropped to roughly $25,720. That’s a 22% price reduction—a deal most car buyers would jump on.

Breaking Down the Savings

Let’s say you bought a 2017 Chevy Volt for $33,220. After applying the federal tax credit, your net cost would be $25,720. But that’s not the whole story. Many states and local utilities offered additional incentives, which could bring your final price even lower.

For example:

• California: Offered a Clean Vehicle Rebate Project (CVRP) of up to $2,500 for PHEVs.
• Colorado: Provided a state tax credit of up to $5,000.
• Maryland: Had a $3,000 excise tax credit.
• Utility rebates: Companies like PG&E and Con Edison offered up to $1,000 for home EV charger installations.

Stacked together, these incentives could reduce your effective purchase price to under $20,000 in some regions. That’s less than the average used car price in 2017—making the Volt a surprisingly affordable option.

Real-World Example: Mike’s Volt Purchase in Colorado

Mike, a software engineer in Denver, bought a 2017 Chevy Volt in April 2017. His breakdown looked like this:

• MSRP: $33,220
• Federal tax credit: -$7,500
• Colorado state tax credit: -$5,000
• Xcel Energy charger rebate: -$500
• Net effective price: $20,220

“I was skeptical at first,” Mike said. “But after driving it for a month, I realized I was saving $150 a month on gas. The tax credits just made the switch a no-brainer.”

Leasing vs. Buying: A Key Difference

One important note: if you leased a 2017 Chevy Volt, the tax credit didn’t go to you. Instead, it went to the leasing company (in this case, GM Financial). That meant the savings were often baked into lower monthly payments. For example, a typical lease payment without incentives might be $350/month. With the credit, it could drop to $250/month.

So while you didn’t claim the credit directly, you still benefited. Just be sure to ask your dealer how the credit was applied—some passed it on as a lower down payment, others as reduced monthly fees.

State and Local Incentives: The Hidden Savings Multiplier

While the federal tax credit was the big headline, the real magic happened when you combined it with state and local incentives. These “stackable” programs turned the 2017 Chevy Volt from a smart choice into a financial slam dunk.

Top States with Strong Incentives (2017)

Here’s a snapshot of states that offered the best additional savings:

State	Incentive Type	Amount	Notes
California	Rebate (CVRP)	$2,500	Available to individuals, nonprofits, and businesses. Income caps applied.
Colorado	State Tax Credit	$5,000	Nonrefundable, but could be carried forward up to 5 years.
Maryland	Excise Tax Credit	$3,000	Applied at time of purchase; no application needed.
New York	Drive Clean Rebate	$2,000	Instant rebate at dealership; no waiting for reimbursement.
Oregon	Clean Vehicle Rebate	$2,500	Available for new and used EVs; income limits applied.

These programs varied widely, so it was crucial to research your local options. A quick search like “[Your State] EV incentives 2017” would often pull up official DMV or energy department pages with up-to-date info.

Utility Company Rebates: The Overlooked Bonus

Many people forget that their electricity provider might offer rebates for EV charging equipment. In 2017, dozens of utilities across the U.S. provided:

• Up to $1,000 for Level 2 home chargers
• Free or discounted installation
• Time-of-use (TOU) rate plans that cut charging costs by 30–50%

For example, Southern California Edison offered a $1,000 rebate for a 240-volt charger. If you already planned to install one, that was essentially free money.

HOV Lane Access and Parking Perks

Beyond direct savings, many states offered non-monetary benefits:

• California and Virginia: Allowed solo drivers in HOV lanes with a “Clean Air Vehicle” decal.
• Seattle and Portland: Free or discounted street parking for EVs.
• Florida: Exemption from emissions testing.

These perks might not save you cash, but they save time and stress. Imagine breezing past rush-hour traffic in the HOV lane—every weekday. That’s real value.

How to Claim the Electric Car Tax Credit (Step-by-Step)

Claiming the federal tax credit wasn’t automatic. You had to file the right form and keep your paperwork straight. Here’s how to do it correctly.

Step 1: Get the IRS Form 8936

The credit is claimed using IRS Form 8936: Qualified Plug-In Electric Drive Motor Vehicle Credit. You’ll need to file this form with your federal tax return (Form 1040).

Key fields on Form 8936:

• Vehicle identification number (VIN)
• Date of purchase
• Vehicle make, model, and year
• Credit amount (based on battery capacity)

For the 2017 Chevy Volt, the credit was $7,500, so you’d enter that on Line 12.

Step 2: Keep Your Documentation

You don’t need to submit proof with your tax return, but you must keep the following records for at least three years:

• Copy of the sales contract
• Manufacturer’s certificate of origin (if new)
• Proof of purchase (invoice, receipt)
• Vehicle title (showing your name)

“I kept a folder with all my Volt paperwork,” said Lisa from Austin. “When I did my taxes, it took five minutes to fill out Form 8936. The peace of mind was worth it.”

Step 3: File and Wait

Once you submit your return, the IRS will process your credit. If you use tax software (TurboTax, H&R Block, etc.), it usually guides you through the process. Just search “electric car tax credit” in the software, and it’ll pull up Form 8936 automatically.

Note: If you file an extension, you still need to file Form 8936 by the extended deadline to claim the credit.

What If You Leased the Car?

If you leased the 2017 Chevy Volt, you couldn’t claim the credit directly. But the leasing company did—and they often passed the savings to you in the form of:

• Lower monthly payments
• Reduced down payment
• Higher lease-end buyout value

Ask your dealer: “How is the federal tax credit being applied to my lease?” A good dealer will explain it clearly. If they’re vague, consider shopping around.

Common Mistakes to Avoid (And How to Dodge Them)

Even with a straightforward process, people make mistakes that cost them money. Here are the top pitfalls—and how to avoid them.

Mistake 1: Assuming the Credit Is a Rebate

The biggest misunderstanding? Thinking the $7,500 is cash in hand. It’s not. It’s a tax credit. If you owe less than $7,500 in federal taxes, you can only claim up to what you owe.

Example: You owe $3,000 in taxes and buy a Volt. You can only claim $3,000 of the credit. The remaining $4,500 is lost—no carryover.

Tip: If you’re a low-income earner, consider buying the car in a high-income year. Or, if you’re self-employed, plan your tax liability in advance.

Mistake 2: Forgetting State Incentives

Many buyers focus only on the federal credit and miss out on state rebates. For instance, a California buyer who didn’t apply for the CVRP missed $2,500—money they could’ve used for a home charger or road trip.

Tip: Visit afdc.energy.gov and search for “incentives” by your ZIP code. It’s the most comprehensive database of U.S. EV incentives.

Mistake 3: Leasing Without Asking Questions

As mentioned earlier, leasing means the credit goes to the finance company. But not all dealers pass on the full savings. Some keep part of the credit as profit.

Tip: Compare lease offers. If one dealership offers $250/month and another $300/month, ask why. The difference might be how they’re using the tax credit.

Mistake 4: Waiting Too Long to File

You must claim the credit in the year you bought the car. If you bought the Volt in December 2017, you had to file Form 8936 with your 2017 taxes—not 2018.

Tip: Mark your calendar. Set a reminder to gather your documents and file early the next year.

Mistake 5: Ignoring Maintenance and Charging Costs

While the tax credit saves you money upfront, don’t forget ongoing costs. The 2017 Volt is reliable, but:

• Battery replacement (if needed) can cost $3,000–$5,000 out of warranty.
• Home charger installation averages $600–$1,200.
• Electricity costs vary by region (e.g., $0.10/kWh vs. $0.30/kWh).

Tip: Use a charging cost calculator (like fueleconomy.gov) to estimate your annual energy use. For most Volt owners, it’s under $500/year.

The Bigger Picture: Why the 2017 Chevy Volt Was a Game-Changer

The 2017 Chevy Volt wasn’t just about saving money—it was about changing the way we think about transportation. At a time when range anxiety still held many back from EVs, the Volt offered a bridge. You could drive 53 miles on electricity (perfect for most commutes), then switch to gas for longer trips. No waiting at charging stations. No fear of running out of juice.

And with the federal tax credit, it became one of the most financially sensible cars on the road. For many, it was the first step into a cleaner, more efficient future. “I didn’t think I could afford an electric car,” said David from Phoenix. “But after the credits, the Volt was cheaper than my old Camry. Plus, I haven’t paid for gas in six months.”

Today, the Volt is no longer in production (Chevy discontinued it in 2019), but its legacy lives on. It proved that plug-in hybrids could be practical, affordable, and popular. And for those who bought one in 2017, the savings—both financial and environmental—are still adding up.

So whether you’re looking back at your 2017 purchase with satisfaction or considering a used Volt today, remember: the electric car tax credit 2017 Chevy Volt wasn’t just a policy. It was an invitation to drive smarter, spend less, and leave a lighter footprint. And honestly? That’s a ride worth taking.

Frequently Asked Questions

What is the electric car tax credit for a 2017 Chevy Volt?

The federal electric car tax credit for a 2017 Chevy Volt is $7,500, as it qualifies under the IRS’s plug-in electric drive motor vehicle credit program. This credit is non-refundable and can only offset your tax liability.

Can I claim the 2017 Chevy Volt tax credit if I lease the vehicle?

No, if you lease the 2017 Chevy Volt, the tax credit goes to the leasing company (the vehicle owner), not the lessee. However, some dealers may factor the credit into lower lease payments.

Are there state incentives in addition to the 2017 Chevy Volt federal tax credit?

Yes, many states offer additional rebates or tax credits for the 2017 Chevy Volt, such as California’s $2,500 Clean Vehicle Rebate Project. Check your state’s energy office website for details.

Does the electric car tax credit phase out for the 2017 Chevy Volt?

No, the 2017 Chevy Volt was not subject to a phaseout in 2017, as General Motors had not yet hit the 200,000-vehicle threshold that triggers the reduction. The full $7,500 credit was available that year.

How do I claim the 2017 Chevy Volt tax credit on my federal return?

File IRS Form 8936 with your tax return to claim the credit. Ensure you have the Manufacturer’s Certificate of Origin (MSO) to verify eligibility for the 2017 Chevy Volt electric car tax credit.

Does the 2017 Chevy Volt qualify for HOV lane access or other local benefits?

Some states, like California and Virginia, granted HOV lane stickers to 2017 Chevy Volt owners. These programs vary by location, so confirm with your local DMV or transportation agency.