Subaru Issues Correction on $7,500 EV Tax Credit for 2024 Solterra Buyers

Jan 29, 2024 03:13 AM EST

SUBARU IMPREZA SPORT CAR RED — (Photo : PIXABAY/5033181)

In a recent news release, Subaru made a critical error regarding the eligibility of some 2024 Solterra owners for the $7,500 EV tax credit. The automaker mistakenly claimed that a portion of these buyers would be entitled to the tax credit. However, a significant issue emerged upon closer inspection - the 2024 Solterra was not manufactured within the United States, rendering its owners ineligible for the tax credit.

Mistake: Buyers of 2024 Subaru Solterra, Not Eligible for $7,500 EV Tax Credit

This mistake was made after Subaru had disclosed pricing and revisions for the 2024 Solterra model, creating confusion for potential buyers who were initially led to believe they could benefit from the tax incentive.

According to reports, Subaru introduced its 2024 Solterra electric SUV, revealing substantial improvements such as accelerated charging capabilities. Thanks to an upgraded battery conditioning system, the 2024 model can recharge up to 80 minutes quicker in adverse weather conditions.

The latest Solterra can now charge from 10% to 80% in as little as 35 minutes, a significant improvement from the previous year's model, which took just under an hour to reach the same level of charge. Moreover, Subaru has announced that the roof rails on the vehicle are designed to support heavy items like rooftop tents, boasting a static load capacity of 700 pounds (along with 176 pounds in dynamic load capacity).

Despite these improvements, Subaru has decided to retain the same initial pricing. The 2024 Solterra will continue to have a starting price of $46,340, which includes the $1,345 destination charge.

Meanwhile, the press release stated that the 2024 Solterra will be eligible for potential federal tax credits of up to $7,500 for specific buyers. Electrek cited CarsDirect report, highlighting that Subaru manufactures the Solterra abroad, rendering it ineligible for the EV tax credit when purchased.

Nonetheless, there is a workaround for obtaining the credit through leasing. Todd W. Hill, Subaru's product relations manager, has confirmed that the tax credit might be accessible to those who lease the vehicle.

Hill added that in general, Subaru uses the term 'owners' to encompass both purchasers and lessees, but in this context, that terminology lacks clarity.Subaru updated the release to state that specific customers may qualify for potential federal tax credits of up to $7,500 for the 2024 Solterra. Additionally, the fine print below details that this eligibility applies when the vehicle is leased through Subaru Motors Finance.

About 2024 Subaru Soltera

According to Car and Driver, the price of 2024 Subaru Soltera starts at $46,840. Furthermore, its review stated that Subaru fans are likely to be drawn to the Solterra's many benefits, which include standard all-wheel drive, a roomy cabin, and the option for off-road capability.

It does, however, have certain drawbacks, including as a subpar driving range that falls short of that of its rivals. Moreover, alternative electric cars operate faster than the Solterra when it comes to charging on DC connections.

It's also important to keep in mind that not everyone will find the styling of the Solterra appealing. Conclusively, although the Solterra offers enthusiasts of Subaru an electric option, it confronts fierce competition in the market because of its relatively small estimated driving range in comparison to competing electric cars.