Kia Electric Car Federal Tax Credit 2019 What You Need to Know

The 2019 Kia electric car federal tax credit offered up to $7,500 in savings for eligible buyers of models like the Kia Niro EV and Soul EV, helping reduce the upfront cost of going electric. To qualify, vehicles had to meet IRS criteria and be purchased before Kia reached the 200,000-unit sales cap, after which the credit began phasing out. This incentive made Kia’s eco-friendly lineup more affordable—while supplies lasted.

Key Takeaways

• Eligibility matters: Confirm your Kia EV qualifies for the 2019 federal tax credit.
• Credit amount: Get up to $7,500 back, depending on battery capacity.
• Phase-out rules: Credits decrease after Kia hits 200,000 eligible EV sales.
• Claim it right: File IRS Form 8936 to claim your credit accurately.
• State incentives: Combine federal credit with state rebates for bigger savings.

Understanding the 2019 Kia Electric Car Federal Tax Credit

Let’s be honest: buying an electric car is exciting. The smooth acceleration, the quiet hum of the motor, and the idea of never seeing a gas station again? Yes, please. But let’s not forget the financial side of things—especially the Kia electric car federal tax credit 2019. If you were shopping for a new EV back then, you probably heard about the federal tax incentive. But what did it actually mean for Kia drivers? Was it a game-changer or just another line on a tax form?

I remember when my neighbor bought her 2019 Kia Niro EV. She was over the moon about the car, but the tax credit? That was the cherry on top. “It felt like the government was giving me a high-five for going green,” she said. And she wasn’t wrong. For many, the federal tax credit made the jump to electric more affordable. But here’s the catch: not all Kia electric cars qualified, and the credit amount wasn’t the same for everyone. So, let’s break it down. What did the 2019 Kia electric car federal tax credit actually cover? Who could claim it? And how much could you really save? Whether you’re a past buyer, a curious future shopper, or just love a good EV story, this guide will help you understand the ins and outs of that tax credit—no accounting degree required.

How the Federal Tax Credit Worked in 2019

The federal electric vehicle tax credit, officially known as the Plug-In Electric Drive Vehicle Credit (IRC Section 30D), was designed to encourage Americans to adopt electric vehicles. In 2019, it offered a credit of up to $7,500 for qualifying new electric cars. But it wasn’t a one-size-fits-all deal. The amount depended on battery capacity and the manufacturer’s sales volume.

How the Credit Was Calculated

The base credit started at $2,500 for EVs with at least 5 kWh of battery capacity. Then, for every additional kWh above 5, the credit increased by $417, up to a maximum of $7,500. That meant cars with larger batteries—like the 2019 Kia Niro EV—qualified for the full $7,500. The Kia Soul EV, with a smaller battery, received a smaller credit.

• Base credit: $2,500 (for ≥5 kWh battery)
• Additional credit: $417 per kWh over 5 kWh
• Maximum credit: $7,500

For example, the 2019 Kia Niro EV had a 64 kWh battery. So, the calculation looked like this: $2,500 + (64 – 5) × $417 = $7,500. Bingo—full credit. But the 2019 Kia Soul EV, with a 30 kWh battery, only got: $2,500 + (30 – 5) × $417 = $3,542. That’s still helpful, but not the full amount.

Who Could Claim the Credit?

The tax credit was available to individual taxpayers who bought a new, qualifying electric vehicle and placed it into service during the tax year. You had to own the car—not lease it—and it had to be used primarily in the U.S. There were no income limits in 2019, so even high earners could claim it.

But here’s a big one: you had to have tax liability. The credit was non-refundable. That means if your tax bill was $4,000 and the credit was $7,500, you’d only get $4,000 off. The remaining $3,500 vanished. No carryover to next year. No refund. So, if you owed little or no federal tax, the credit was less valuable—or even useless.

My cousin learned this the hard way. He bought a Niro EV in 2019 but was in a low-income bracket due to job changes. “I got excited about the $7,500,” he said, “but then my tax guy told me I’d only save $1,200. It was a letdown.”

When Did the Credit Start Phasing Out?

The federal tax credit had a phase-out rule: once a manufacturer sold 200,000 qualifying EVs in the U.S., the credit began to drop. The phase-out lasted 15 months, in six-month increments:

• First 6 months after threshold: Full credit
• Next 6 months: 50% of credit
• Final 3 months: 25% of credit
• After that: Credit ends

By 2019, Tesla and GM had already hit the 200,000 mark, so their credits were phasing out. But Kia hadn’t reached that number yet. That meant all qualifying Kia EVs sold in 2019 were eligible for the full credit—no phase-out. Big win for Kia buyers!

Which 2019 Kia Electric Cars Qualified?

Not all electric Kias were created equal when it came to the federal tax credit. In 2019, Kia offered two fully electric models: the Kia Soul EV and the Kia Niro EV. Both qualified, but the credit amount differed due to battery size.

2019 Kia Niro EV

The Niro EV was Kia’s big EV push in 2019. With a 64 kWh battery and an EPA-estimated range of 239 miles, it was a solid contender in the compact SUV space. And because of that large battery, it qualified for the full $7,500 federal tax credit.

• Battery capacity: 64 kWh
• Range: 239 miles
• Credit amount: $7,500
• Base MSRP: $38,500 (before incentives)

After the tax credit, the effective price dropped to $31,000—before state rebates or local incentives. In states like California, buyers could stack the federal credit with a $2,000 state rebate, pushing the price down even further. That made the Niro EV one of the more affordable long-range EVs on the market in 2019.

2019 Kia Soul EV

The Soul EV was the quirky, boxy sibling in Kia’s electric lineup. In 2019, it had a 30 kWh battery and a range of about 111 miles. While it was fun to drive and great for city commutes, it didn’t have the long-range appeal of the Niro.

• Battery capacity: 30 kWh
• Range: 111 miles
• Credit amount: $3,542 (rounded to $3,540 on IRS forms)
• Base MSRP: $33,950 (before incentives)

So, the effective price after the federal credit was around $30,408. That’s a nice discount, but not as dramatic as the Niro’s. Still, for urban drivers who didn’t need long-range capability, the Soul EV was a practical, fun, and affordable EV option.

What About Plug-In Hybrids?

Kia also offered the 2019 Kia Niro Plug-In Hybrid (PHEV), which had a 8.9 kWh battery and an electric-only range of about 26 miles. It qualified for a partial federal tax credit—$4,502—because its battery was smaller.

But here’s the thing: the PHEV didn’t get the full $7,500. And since it wasn’t fully electric, it didn’t have the same zero-emission appeal. For buyers focused on Kia electric car federal tax credit 2019, the fully electric models were the clear winners.

State and Local Incentives: Stacking the Savings

The federal tax credit was just the beginning. In 2019, many states and local utilities offered additional incentives for electric car buyers. These could be rebates, tax credits, HOV lane access, or free charging. And the best part? You could often combine them with the federal credit.

California: The EV Incentive Powerhouse

California led the pack with its Clean Vehicle Rebate Project (CVRP). In 2019, eligible buyers could get up to $2,000 for a new electric car. The 2019 Kia Niro EV qualified for the full amount, while the Soul EV did too (since it was fully electric). Income limits applied, but most middle-income buyers qualified.

Plus, California allowed EVs to use HOV lanes—even with just one person in the car. That saved commuters hours in traffic. “I used to sit in traffic for an hour each way,” my neighbor said. “Now I breeze through the carpool lane. It’s like a time machine.”

Colorado, New York, and Other States

Colorado offered a state tax credit of up to $5,000 for EVs. New York had a $2,000 rebate through its Drive Clean Rebate program. Oregon, New Jersey, and Massachusetts also had generous incentives.

Some utilities even pitched in. For example, Southern California Edison offered a $1,000 rebate for installing a Level 2 home charger. That made the total savings even sweeter.

How to Find Your Local Incentives

The best place to check? The Database of State Incentives for Renewables & Efficiency (DSIRE) at dsireusa.org. It’s free, up-to-date, and lists every EV incentive by ZIP code.

Pro tip: call your local utility company, too. Some had unadvertised rebates for EV buyers. One buyer in Austin told me he got a $750 charger rebate he didn’t even know about—just by asking.

Example: Total Savings in California

Let’s say you bought a 2019 Kia Niro EV in California:

• Federal tax credit: $7,500
• CA Clean Vehicle Rebate: $2,000
• HOV lane access: Priceless (but saves time and stress)
• Estimated total savings: $9,500+

That’s nearly a quarter of the car’s price wiped out. And if you qualified for utility rebates? Even better.

Common Misconceptions and Pitfalls

The Kia electric car federal tax credit 2019 was a great deal—but it came with confusion. Many buyers misunderstood how it worked, leading to disappointment or missed opportunities. Let’s clear up the myths.

“The Credit Is a Refund”

No, it’s not. The federal tax credit reduces your tax bill dollar for dollar. If you owe $6,000 in federal taxes and get a $7,500 credit, you pay $0 and lose the extra $1,500. It doesn’t come back as a check.

This was a big surprise for some buyers. “I thought I’d get $7,500 back,” one buyer told me. “Then I realized I’d only save what I owed. I wish I’d known that sooner.”

“Leasing Gets the Credit”

Actually, no. If you leased a Kia EV in 2019, the leasing company (usually Kia Finance) claimed the credit—not you. But they often passed some of the savings to you in the form of lower monthly payments.

For example, a $350/month lease might drop to $290 because of the credit. But you didn’t get the cash. You just paid less over time. That’s still good, but it’s not the same as a direct tax benefit.

“Used EVs Qualify”

In 2019, the federal credit only applied to new cars. Buying a used 2019 Kia Niro EV? No credit for you. (Note: The 2023 Inflation Reduction Act later introduced a used EV credit, but that’s for future years.)

“All Kia EVs Are Eligible”

Not quite. The 2019 Kia Optima Hybrid and other non-plug-in models didn’t qualify. Only vehicles with plug-in capability and a qualifying battery size were eligible. Always check the IRS’s Qualified Plug-In Electric Drive Motor Vehicle List before buying.

“The Credit Is Automatic”

You had to claim it on your tax return using Form 8936. The dealer might give you a statement, but it’s your job to file it. No form, no credit.

One buyer forgot to file Form 8936 for two years. “I thought the dealer handled it,” he said. “I lost over $15,000 in credits.” Ouch.

Real Buyer Stories: Lessons from 2019

Let’s hear from real people who bought Kia EVs in 2019. Their stories highlight the highs, lows, and surprises of the federal tax credit.

Sarah: The Savvy Saver

Sarah, a teacher in Portland, bought a 2019 Kia Niro EV. She owed $6,800 in federal taxes. With the $7,500 credit, she paid $0 and got a $700 refund from other deductions. “I felt like I was cheating the system,” she laughed. “But I wasn’t—I was just smart.”

She also got a $1,000 Oregon rebate and free charging at work. Her total savings? Over $8,500. “I’d have bought the car anyway,” she said. “But the credit made it feel like a no-brainer.”

Mike: The Lease Confusion

Mike leased a 2019 Soul EV in Texas. He assumed he’d get the $3,542 credit. “I didn’t realize the leasing company got it,” he said. “But my payments were $50 less per month. So, I still won—just not in cash.”

He later bought out the lease and claimed no credit. “It’s a good reminder: read the fine print.”

Lena: The Missed Opportunity

Lena bought a Niro EV in 2019 but didn’t file Form 8936. “I was overwhelmed with moving,” she said. “I didn’t think about taxes until April 2020.” By then, she’d missed the deadline to amend her return for that year.

“I learned my lesson,” she said. “Now I keep all my EV documents in one folder.”

Data Table: 2019 Kia EV Tax Credit Comparison

Model	Battery (kWh)	Range (mi)	Federal Credit	Base MSRP	Effective Price (After Credit)	Notes
Kia Niro EV	64	239	$7,500	$38,500	$31,000	Full credit; eligible in all states
Kia Soul EV	30	111	$3,540	$33,950	$30,410	Partial credit; ideal for city driving
Kia Niro PHEV	8.9	26 (electric)	$4,502	$28,500	$23,998	Plug-in hybrid; not fully electric

The Bottom Line: Was It Worth It?

Looking back, the Kia electric car federal tax credit 2019 was a solid incentive. For buyers who owed federal taxes, it could save thousands—especially with the Niro EV’s full $7,500 credit. The ability to stack it with state rebates made it even better. And since Kia hadn’t hit the 200,000 sales threshold, there was no phase-out to worry about.

But it wasn’t perfect. The non-refundable nature meant low-income buyers got less value. Leasing shifted the benefit to the finance company. And the paperwork—Form 8936—was easy to overlook.

Still, for most 2019 Kia EV buyers, the credit was a real win. It lowered the cost of entry, made long-range EVs more accessible, and helped push the U.S. toward cleaner transportation.

If you’re shopping for a used 2019 Kia EV today, remember: the federal credit is long gone. But you might qualify for state incentives or used EV credits under newer laws. And if you’re considering a new Kia EV now, check current federal and local incentives—they’ve changed since 2019.

At the end of the day, the 2019 Kia electric car federal tax credit wasn’t just about saving money. It was about making a smart, sustainable choice easier. And that? That’s something worth celebrating.

Frequently Asked Questions

What is the Kia electric car federal tax credit for 2019?

The 2019 Kia electric car federal tax credit offers eligible buyers up to $7,500 in tax incentives for purchasing a qualifying new Kia EV, such as the Kia Niro EV or Soul EV. The exact amount depends on the vehicle’s battery capacity and IRS guidelines.

Which Kia electric cars qualify for the 2019 federal tax credit?

Qualifying models include the 2019 Kia Niro EV and Kia Soul EV, as they meet the IRS requirements for plug-in electric vehicles with battery capacities of at least 5 kWh. Always verify eligibility on the official IRS website.

How do I claim the Kia electric car federal tax credit in 2019?

To claim the credit, file IRS Form 8936 with your federal tax return for the year you purchased the vehicle. You’ll need the manufacturer’s certification statement, which your Kia dealer should provide at purchase.

Does the 2019 Kia federal tax credit apply to used electric cars?

No, the federal tax credit only applies to new Kia electric cars purchased in 2019. Used EVs do not qualify for this incentive, though some states offer separate rebates for pre-owned electric vehicles.

Is the Kia electric car tax credit refundable in 2019?

The credit is non-refundable, meaning it can reduce your tax liability to $0 but won’t result in a refund. If your tax liability is less than the credit amount, you may lose the unused portion.

When does the 2019 Kia electric car federal tax credit expire?

The credit begins phasing out for Kia after the manufacturer sells 200,000 eligible EVs in the U.S., as per IRS rules. For 2019 models, the full credit was available, but check the IRS site for phase-out status updates.