Is there a tax break for purchasing electic vehicle?

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DanCar
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Joined: Tuesday, November 21, 2006 - 18:49
Points: 181
Is there a tax break for purchasing electic vehicle?

Anyone know if there is a federal tax break for purchasing an electric vehicle?

Thanks,
Daniel

DanCar
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Last seen: 13 years 11 months ago
Joined: Tuesday, November 21, 2006 - 18:49
Points: 181
Re: Is there a tax break for purchasing electic vehicle?

Reading this I.R.S. bulletin they make it sound like it only applies to cars or trucks.
http://www.irs.gov/newsroom/article/0,,id=157557,00.html

But if I read the tax law it says motor vehicle:
http://www.taxalmanac.org/index.php/Sec._30B._Alternative_motor_vehicle_credit

SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.
(a) Allowance of Credit- There shall be allowed as a credit
against the tax imposed by this chapter for the taxable
year an amount equal to the sum of--
(1) the new qualified fuel cell motor vehicle credit
determined under subsection (b),
(2) the new advanced lean burn technology motor vehicle credit
determined under subsection (c),
(3) the new qualified hybrid motor vehicle credit determined
under subsection (d), and
(4) the new qualified alternative fuel motor vehicle credit
determined under subsection (e).

Skipping to section (e):

(e) New Qualified Alternative Fuel Motor Vehicle Credit-
(1) ALLOWANCE OF CREDIT- Except as provided in paragraph (5),
the new qualified alternative fuel motor vehicle credit determined
under this subsection is an amount equal to the applicable
percentage of the incremental cost of any new qualified alternative
fuel motor vehicle placed in service by the taxpayer during the
taxable year.
(2) APPLICABLE PERCENTAGE- For purposes of paragraph (1), the
applicable percentage with respect to any new qualified alternative
fuel motor vehicle is--
(A) 50 percent, plus
(B) 30 percent, if such vehicle--
(i) has received a certificate of conformity under the Clean Air
Act and meets or exceeds the most stringent standard available
for certification under the Clean Air Act for that make and
model year vehicle (other than a zero emission standard), or
(ii) has received an order certifying the vehicle as meeting
the same requirements as vehicles which may be sold or leased
in California and meets or exceeds the most stringent standard
available for certification under the State laws of California
(enacted in accordance with a waiver granted under section 209(b)
of the Clean Air Act) for that make and model year vehicle
(other than a zero emission standard).
For purposes of the preceding sentence, in the case of any new qualified
alternative fuel motor vehicle which weighs more than 14,000 pounds
gross vehicle weight rating, the most stringent standard available shall
be such standard available for certification on the date of the enactment
of the Energy Tax Incentives Act of 2005.
(3) INCREMENTAL COST- For purposes of this subsection, the incremental
cost of any new qualified alternative fuel motor vehicle is equal
to the amount of the excess of the manufacturer's suggested retail
price for such vehicle over such price for a gasoline or diesel fuel
motor vehicle of the same model, to the extent such amount does not
exceed--
(A) $5,000, if such vehicle has a gross vehicle weight rating of
not more than 8,500 pounds,
(B) $10,000, if such vehicle has a gross vehicle weight rating
of more than 8,500 pounds but not more than 14,000 pounds,
(C) $25,000, if such vehicle has a gross vehicle weight rating
of more than 14,000 pounds but not more than 26,000 pounds, and
(D) $40,000, if such vehicle has a gross vehicle weight rating
of more than 26,000 pounds.
(4) NEW QUALIFIED ALTERNATIVE FUEL MOTOR VEHICLE- For purposes of
this subsection--
(A) IN GENERAL- The term `new qualified alternative fuel motor
vehicle' means any motor vehicle--
(i) which is only capable of operating on an alternative fuel,
(ii) the original use of which commences with the taxpayer,
(iii) which is acquired by the taxpayer for use or lease, but
not for resale, and
(iv) which is made by a manufacturer.
(B) ALTERNATIVE FUEL- The term `alternative fuel' means
compressed natural gas, liquefied natural gas, liquefied
petroleum gas, hydrogen, and any liquid at least 85 percent
of the volume of which consists of methanol.

Interesting...

vinnie
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Last seen: 14 years 6 months ago
Joined: Friday, July 27, 2007 - 07:30
Points: 161
Re: Is there a tax break for purchasing electic vehicle?

I can't remember the exact government site I was at, but I did notice earlier this summer that there used to be a tax credit specifically for all-electric vehicles that was repealed by congress. I was not clear on it, but I thought what I was reading indicated that tax credits existed for hybrids and any vehicle that burned something other than gas but not EVs. I couldn't help feel that big car manufacturers and/or oil companies had a part in this legislation. I am planning to review it more closely at tax time but I don't think it looks good.

Luckily, Colorado offers a ver nice tax credit for EVs so at least I can take advantage of that.

Cheers,
Vinnie
Broomfield, CO

Vinnie
Broomfield, CO

davew
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Last seen: 8 years 2 months ago
Joined: Monday, November 20, 2006 - 20:13
Points: 85376
Re: Is there a tax break for purchasing electic vehicle?

[quotevinnie_basile]Luckily, Colorado offers a very nice tax credit for EVs so at least I can take advantage of that.[/quote]

We do? Is that just for cars or all EVs? I looked into this when I bought my scooter and didn't find anything.

"we must be the change we wish to see in the world"

vinnie
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Last seen: 14 years 6 months ago
Joined: Friday, July 27, 2007 - 07:30
Points: 161
Re: Is there a tax break for purchasing electic vehicle?

Yeah, it does not specify automobiles, only says vehicles.

Check it out: Colorado Tax Credit

There is also a credit for any expenditures you make to create a recharging station at your residence although I need to look that one up again in the statutes.

Cheers,
Vinnie
Broomfield, CO

Vinnie
Broomfield, CO

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