Although the sales of EVs have been off to a slow start in 2012, tax incentives continue to encourage sales. Currently the IRS credit(IRC 30D) for EVs is described on their website as follows:
“For vehicles acquired after December 31, 2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500.”
The credit is available until the manufacturer of the vehicle you are considering sells 200,000 vehicles that qualify for the credit, and then will be gradually phased out for that manufacturer with additional sales. 2013 may prove to be even more promising if a proposed tax credit of up to $10,000 on new EV purchases is approved.
It is pointed out in an article at the respected vehicle information site edmunds.com that the credit is also limited by your tax liability, so if you only owe $5,000 in taxes for the year, the $7,500 EV credit will only cover the amount you owe. (That basically the means that the government won’t make you pay them the taxes you owe, but they aren’t going to pay you the difference if you don’t use the full credit amount.) Still sounds like a deal to me!
Have you received a tax credit for buying an EV or back when there were credits offered for hybrids? Was it a significant motivator in your choice of vehicle purchase? Was it easy to do at tax time? Leave a comment below!