Why is leasing usually better than buying for EV tax credits?

Leasing often captures the tax credit more reliably than buying because the commercial lease credit has fewer restrictions. The retail purchase credit requires the vehicle to meet battery sourcing and assembly requirements that many popular EVs fail, meaning not all EVs qualify for the $7,500 credit on purchase. On a lease, the commercial vehicle credit applies more broadly. Additionally, the lease credit has no income limit, so higher-earning buyers who are ineligible for the retail credit can still benefit through a lease.