Tax Tips for Individuals
Tax Credit For Plug-in Electric Vehicles
The Alternative Motor Vehicle Credit, originally enacted under The Energy Policy Act of 2005, allowed a tax credit for some popular hybrid vehicles, however, this tax credit expired at the end of 2010. Although the former credit for many hybrid vehicles is no longer available, for 2012 and future tax years, a tax credit of up to $7,500 is still available for vehicles classified as plug-in electric vehicles, or PEVs.
The credit is available only to the original purchaser of a new qualifying vehicle, and the vehicle must be placed in service in the same year the credit is being claimed on the return. If the qualifying vehicle is leased the credit is available only to the leasing company. Also, the vehicle must be used primarily in the United States.
Additional conditions regarding qualified manufacturers and battery pack energy specifications may also apply in determining credit eligibility. To find out whether your car qualifies for the Qualified Plug-in Electric Drive Motor Vehicle tax credit and the maximum amount of that credit, you can go to the IRS.gov website and search for "plug-in vehicles" or contact us for more information.