Cost & Savings Is there a federal tax credit I get for buying electric? Absolutely. Buy a smart electric drive, and you'd get a tax credit equal to your tax bill, up to $7,500. So, if you pay $5,000 in taxes, you'll get a $5,000 credit. If you pay $7,500 or more in taxes, you'll get the full $7,500. Just know that the government may phase this out as electric cars become more popular, so the time to save is now. And for more details, see your certified tax professional or read about the Plug-In Electric Drive Vehicle Credit from the IRS. What about local incentives? Where can I find them? Many states offer their own incentives. For example, in California, electric cars get unlimited access to the HOV lane, which is great in traffic. In Illinois, you can earn a rebate of up to $4,000. To see your state's incentives, visit www.afdc.energy.gov/laws/state. Can I buy or lease an electric drive? You sure can. All smart vehicles can be financed or leased, whichever suits your needs. What's the warranty like on an electric drive? The warranty on an electric drive is the same as our gas models, with a little extra. Like gas models, you're covered for defects in material and workmanship for 48-months or 50,000 miles (whichever comes first). However, your electric battery has an 8-year warranty of its own. Do I have to pay for electricity like I paid for gas? Yes, but it's much cheaper. Electricity in the US is typically about 12 cents per kWh. If you drive 15,000 miles per year, that's about $540. A year of gas, on the other hand, can cost around $1,400. On top of that, the price of gasoline can fluctuate wildly, whereas the price of electricity is relatively stable. To see the average price of electricity in your state, visit the Energy Information Administration website.