Niro PHEV Tax Credit & Tariffs
Even before the 2018 Niro PHEV was released, I read articles that said Kia was going to only release a limited quantity of the Plug In models and would target "green" states because Kia believed the PHEV had a better chance of selling in those states. Last year when congress revised the tax codes, they came close to eliminating the federal tax credit for electric car purchases. Then there's the current market speculation surrounding proposed tariffs on imported vehicles. Just this week Experian said that a 25% tariff on imported cars and parts could raise the price of a car in the U.S. an average of $3,300 to $5,100 even though many of those vehicles are assembled at U.S. factories. There's no telling if those tariffs will actually be imposed but if buyers are on the fence about buying a 2018 Niro PHEV vs a 2019 model, is the risk waiting worth taking? I didn't think so. I purchased a 2018 model four weeks ago. And when I complete my federal taxes in early 2019 I'll be taking a $4,543 tax credit which will more than pay for the increased cost difference between a Niro PHEV and a Niro HEV. I've been running on all electric since taking delivery except for using one sixteenth of a tank of gas for the two hour ride home from the dealership. I'm actually looking forward to using some gas in a few weeks when we take our bi-monthly trip to Costco and Walmart. No regrets here about buying a 2018 model.