Dec
15
Tax Credit for your Electric Vehicle (EV)
We received some useful tax credit information, just in time for the upcoming tax season for EV owners. Here are the information.
PLUG-IN ELECTRIC VEHICLE CREDITS___IRS
The Emergency Economic Stabilization Act of 2008 created a new tax credit for “new qualified plug-in electric drive motor vehicles.” The credit is effective for tax years beginning after December 31, 2008.
The American Recovery and Reinvestment Act of 2009 made certain modifications to the credit. The two most relevant changes are:
・ The credit is made permanent, instead of applying only to vehicles purchased before January 1, 2015; and
・ Phaseouts are triggered based on sales per manufacturer.
Credit amount: The credit, subject to a weight limit, is:
・ $2,500; plus
・ $417 for each kilowatt hour (kWh) of traction battery capacity in excess of 4 kWh measured from a 100% state of charge to a 0% state of charge.
The maximum credit is $7,500 for a qualifying vehicle with a gross vehicle weight rating of no more than 10,000 pounds.
・Qualifying Vehicles: Four vehicles have been certified at press time.
– CODA Sedan
– 2011 Chevrolet Volt
– 2011 Nissan Leaf
– 2008−2010 Tesla Roadster
・Qualifying use: The following requirements must be met
– The original use of the vehicle must commence with the taxpayer (new car)
– The vehicle is purchased or lease by the taxpayer (not for resale)
– The vehicle must be used primarily in the United States
＊Lease: The credit is available to the lessor in the case of a lease.
CLEAN REBATE___CALIFORNIA
Certain “clean” vehicles purchased or leased on or after March 15, 2010, are eligible for state rebates on a first-come, first-serviced basis under the Clean Vehicle Rebate Project.
While the ARB has funding for the Project through 2015, they determine whether funding should continue on a year-by-year basis. Specific annual funding and rebate amounts are determined annually by the ARB. According to the ARB, $537,250 has been rebated to consumers and businesses through October 31, 2010.
Currently, rebates of up to $5,000 per light-duty vehicle are available for individuals and businesses that purchase or lease new eligible zero-emission or plug-in hybrid electric vehicles.
You may apply for the rebates online at:
https://energycenter.org/index.php/incentive-programs/clean-vehicle-rebate-project/cvrp-eligible-vehicles
・Eligible vehicles
Vehicles eligible for the state rebate include new vehicles purchased or leased on or after March 15, 2010.
Note: The Nissan 2011 Leaf is expected to qualify in December 2010; however, the 2011 Chevy Volt does not qualify. The 2013 Chevy Volt is expected to qualify.
For information on eligible vehicles and rebate amounts, visit: www.energycenter.org/cvrp
Information provided by: Ishigami, Ishigami, & Ochi, LLP
Contact below for more information
info@iiocpa.com