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Qualified Plug-in Electric Drive Motor Vehicle Tax Credit

August 22, 2012

Julissa Jandreau, CPA
Tax Manager

Federal law provides plug in electric vehicle retail purchasers (not lessees) with the opportunity to claim the “Qualified Plug-in Electric Drive Motor Vehicle Tax Credit” for qualified vehicles. The credit is $2,500 for vehicles powered by a five-kilowatt hour battery, with an additional $417 for each kilowatt hour of battery power beyond five. The credit cannot exceed $7,500. The credit begins to phase out for a manufacturer’s vehicle when at least 200,000 qualifying vehicles have been sold for use in the United States.

If the purchaser is a government unit or a tax exempt entity, the dealer who sells the vehicle may instead be entitled to claim the tax credit. The dealer will only be entitled to claim the credit if the dealer discloses the amount of the available credit to the purchaser. Eligible dealers may claim the credit as part of the General Business Credit.

Below is a list of vehicles (make and model) that qualify for the above credit (Based on IRS website updated as of April 2012):

 

Manufacturer

Model Year

Vehicle Description

Credit Amt

AMP Electric Vehicles, Inc.

2012

AMP GCE Electric Vehicle

$7,500

 

2012

AMP MLE Electric Vehicle

$7,500

Azure Dynamics, Inc.

2012

Azure Dynamics Transit Electric

$7,500

CODA Automotive

2012

CODA Sedan

$7,500

Fisker Automotive, Inc.

2012

Fisker Karma Sedan

$7,500

Ford Motor Company

2012

Ford Focus Electric

$7,500

General Motors Corporation

2011, 2012

Chevrolet Volt

$7,500

Mitsubishi Motors NA

2012

Mitsubishi i-MiEV

$7,500

Nissan North America

2011, 2012

Nissan Leaf

$7,500

Smart USA Distributor LLC

2011

smart fortwo Electric Drive Vehicle

$7,500

Tesla Motors Inc.

2011

Tesla Roadster

$7,500

Think NA

2011

Think City EV

$7,500

Toyota

2012

Toyota Prius Plug-in Electric Drive

$2,500

 

2012

Toyota RAV4 EV

$7,500

Wheego Electric Cars, Inc.

2011

Wheego LiFe Electric Vehicle

$7,500


 

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