The Nissan Leaf is one of the most popular electric vehicles in the world, with over 500,000 units sold since its launch in 2010. But in recent years, the Leaf has faced stiff competition from newer and more advanced EVs, such as the Tesla Model 3, the Chevrolet Bolt, and the Hyundai Kona Electric. One of the main disadvantages of the Leaf was that it had exhausted its federal tax credit allocation, making it more expensive than its rivals in the US market.
But that’s about to change. Nissan has announced that the 2024 Leaf will regain eligibility for up to $3,750 in federal tax credit, thanks to a new partnership with EVgo, the largest public fast-charging network in the US. This means the Leaf will have a lower starting price than any other EV in its class, making it a more attractive option for budget-conscious buyers.
How does the tax credit work?
The federal tax credit for EVs is a program that offers a dollar-for-dollar reduction in the buyer’s income tax liability, up to a maximum of $7,500 per vehicle. However, the credit is not available for all EVs. It only applies to the first 200,000 units sold by each manufacturer in the US. Once that limit is reached, the credit begins to phase out over a period of one year until it is completely eliminated.
Nissan reached the 200,000-unit threshold in late 2018, meaning that the Leaf lost its full tax credit eligibility in 2019 and had no tax credit in 2020 and 2021. This disadvantaged the Leaf compared to other EVs that still had access to full or partial credit, such as the Tesla Model 3, the Chevrolet Bolt, and the Hyundai Kona Electric.
But Nissan has found a way to bring back the tax credit for the Leaf by partnering with EVgo. EVgo is a qualified plug-in electric drive motor vehicle (QPEDMV) manufacturer, meaning it can claim tax credits for its EVs and those that use its charging network. EVgo has agreed to transfer its tax credit allocation to Nissan, allowing the Leaf to regain up to $3,750 in federal tax credit, depending on the vehicle’s battery size and trim level.
How much does the Leaf cost now?
The 2024 Nissan Leaf has two battery options: a 40 kWh pack with 149 miles of range and a 62 kWh pack with 226 miles of range. The 40 kWh Leaf has two trim levels: the base S and the upgraded SV. The 62 kWh Leaf has three trim levels: the S Plus, the SV Plus, and the SL Plus.
The starting prices of the 2024 Leaf, before and after the tax credit, are as follows:
Table
| Trim level | Battery size | Range | MSRP | Tax credit | Effective price |
|---|---|---|---|---|---|
| S | 40 kWh | 149 mi | $28,375 | $3,000 | $25,375 |
| SV | 40 kWh | 149 mi | $30,675 | $3,000 | $27,675 |
| S Plus | 62 kWh | 226 mi | $33,375 | $3,750 | $29,625 |
| SV Plus | 62 kWh | 226 mi | $36,375 | $3,750 | $32,625 |
| SL Plus | 62 kWh | 226 mi | $39,375 | $3,750 | $35,625 |
As you can see, the tax credit significantly affects the Leaf’s effective price, especially for the 62 kWh models. For example, the base S Plus model now costs less than the base 40 kWh model without the tax credit. The top-of-the-line SL Plus model, with features such as leather seats, Bose audio system, and ProPilot Assist driver assistance technology, now costs less than the base Tesla Model 3 Standard Range Plus, with a starting price of $36,990.
How does the Leaf compare to other EVs?
The Nissan Leaf is not the only EV that benefits from the federal tax credit. Other EVs that still have full or partial credit access include the Chevrolet Bolt, the Hyundai Kona Electric, the Kia Niro EV, the Volkswagen ID.4, and the Ford Mustang Mach-E. Here is a comparison table of some of the critical specifications and prices of these EVs, along with the Leaf and the Tesla Model 3:
Table
| Model | Battery size | Range | MSRP | Tax credit | Effective price |
|---|---|---|---|---|---|
| Nissan Leaf | 40 kWh | 149 mi | $28,375 | $3,000 | $25,375 |
| Nissan Leaf | 62 kWh | 226 mi | $33,375 | $3,750 | $29,625 |
| Chevrolet Bolt | 66 kWh | 259 mi | $31,995 | $7,500 | $24,495 |
| Hyundai Kona Electric | 64 kWh | 258 mi | $37,390 | $7,500 | $29,890 |
| Kia Niro EV | 64 kWh | 239 mi | $39,090 | $7,500 | $31,590 |
| Volkswagen ID.4 | 82 kWh | 250 mi | $39,995 | $7,500 | $32,495 |
| Ford Mustang Mach-E | 68 kWh | 230 mi | $42,895 | $7,500 | $35,395 |
| Ford Mustang Mach-E | 88 kWh | 300 mi | $49,800 | $7,500 | $42,300 |
| Tesla Model 3 | 50 kWh | 263 mi | $36,990 | $0 | $36,990 |
| Tesla Model 3 | 75 kWh | 353 mi | $46,990 | $0 | $46,990 |
As you can see, the Nissan Leaf is now one of the most affordable EVs in the US market, thanks to the tax credit. The 40 kWh Leaf has the lowest practical price of any EV in the table, while the 62 kWh Leaf is cheaper than most of its competitors with similar or higher ranges. The only EV that beats the Leaf in price and range is the Chevrolet Bolt, which also has a $7,500 tax credit. However, the Bolt is facing a recall issue due to a potential fire risk in its battery pack, which may deter some buyers.
The Leaf has some advantages over other EVs regarding charging options and availability. The Leaf is compatible with CHAdeMO and CCS fast-charging standards, meaning it can use any of the over 40,000 public charging stations in the US. The Leaf also has access to the Nissan Energy Perks by EVgo program, which offers discounts and free charging sessions at EVgo stations for Leaf owners. The Leaf is also widely available in most states, unlike other EVs with limited distribution or availability.
Conclusion
The Leaf is a reliable and practical EV that has been around for over a decade. It offers a decent range, a spacious interior, and a smooth driving experience. With the new tax credit eligibility, the Leaf is now more affordable than ever, making it an excellent choice for anyone looking for a low-cost, eco-friendly vehicle. The Leaf may not have the bells and whistles of some of the newer and fancier EVs, but it has proven itself as a solid and dependable option that can meet the needs of most drivers. If you are interested in buying a Leaf, visit the Nissan website or your local dealer to learn more.
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