How does the federal EV tax credit work on a lease?

When you lease an EV, the leasing company owns the vehicle and claims the $7,500 commercial clean vehicle credit. The IRS requires lessors to pass this benefit to consumers in the form of a lower capitalized cost. This is advantageous because the lease credit does not have the same income limits or vehicle price caps that apply to retail purchases. It is one reason leasing an EV often makes more financial sense than buying.