PEV: Plug-in Electric Vehicle
By Claudia Buck: McClatchy Newspapers
Tax credits for electric vehicles: That’s the topic asked this week by an “Ask the Experts” reader. The answer is from Internal Revenue Service tax expert Jesse Weller.
QUESTION: The Nissan Leaf all-electric vehicle advertises some sort of $7,500 tax break from the IRS. When I asked the Nissan salesman how the $7,500 tax credit works, I was instructed to ask my “tax man.”
So, tax man, here it is: I am self-employed and make estimated tax payments throughout the year. If I’ve done everything right, I should have little or no income tax liability on April 15. How then do I take advantage of the aforementioned $7,500? Is it a credit that carries over year to year? I suspect the $7,500 amount is not guaranteed.
ANSWER: The law provides a federal tax credit for qualified plug-in electric drive vehicles, which includes passenger vehicles and light trucks.
The credit for this type of vehicle originally was to expire in 2014 but was made permanent by the American Recovery and Reinvestment Act of 2009.
The maximum credit allowed for a vehicle bought after 2009 is $7,500. As of today, nine manufacturers of this type of vehicle have received IRS acknowledgment of their eligibility for the credit, and the amount that qualifies.
The list of qualified plug-in electric vehicles is on the IRS website at www.irs.gov/businesses (Search under “electric.”)
Source: The Kansas City Star