Federal All-Electric and Plug-in Hybrid Vehicle Income Tax Credit
All-electric and plug-in hybrid cars purchased in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The credit amount will vary based on the capacity of the battery used to power the vehicle. State and/or local incentives may also apply.
To be certified for the credit by the vehicle manufacturer, the vehicle must meet the following requirements:
- The vehicle must be made by a manufacturer (i.e., it doesn't include conventional vehicles converted to electric drive).
- It must be treated as a motor vehicle for purposes of title II of the Clean Air Act.
- It must have a gross vehicle weight rating (GVWR) of not more than 14,000 lbs.
- It must be propelled to a significant extent by an electric motor which draws electricity from a battery which
- has a capacity of not less than 4 kilowatt hours and
- is capable of being recharged from an external source of electricity.
The following requirements must also be met for a certified vehicle to qualify:
- The original use of the vehicle commences with the taxpayer—it must be a new vehicle.
- The vehicle is acquired for use or lease by the taxpayer, and not for resale. (The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.)
- The vehicle is used mostly in the United States.
- The vehicle must be placed in service by the taxpayer during or after the 2010 calendar year.
- Vehicle manufacturers include:
- Electric Mobile Cars
- Ford/Azure Dynamics
- General Motors
- Via Motors