Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has reminded taxpayers that, if, during 2009, they purchase plug-in electric vehicles that use certain types of batteries, they may qualify for one of two new tax credits. The Emergency Economic Act of 2008 (P.L. 110-343) created a new credit for qualified plug-in electric drive motor vehicles placed in service in 2009 through 2014. The credit is equal to the applicable amount for each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the tax year. The applicable amount is the sum of $2,500, plus an additional $417 for each kilowatt hour of traction battery capacity in excess of four kilowatt hours (Code Sec. 30D(a)(2)).

  The American Recovery and Reinvestment Tax Act of 2009 (P.L. 111-5) added a new credit against tax that is generally modeled on the plug-in electric drive motor vehicle credit in Code Sec. 30D. The credit applies to purchases after February 17, 2009, and equals 10 percent of the cost of acquiring certain electrically powered two-wheeled vehicles, three-wheeled vehicles and low-speed vehicles. The credit is available for the tax year in which the qualifying vehicle is put into service.

  Qualifying vehicles, commonly called "neighborhood electric vehicles," must be manufactured primarily for use on public roadways. While such vehicles may qualify for both credits, a taxpayer may not claim both credits for the same vehicle.

IR-2009-45,
2009FED ¶46,349

Other References:

 
Code Sec. 30

  CCH Reference - 2009FED ¶4056B.01

 
Code Sec. 30D

  CCH Reference - 2009FED ¶4059P.01

  Tax Research Consultant

  CCH Reference - TRC INDIV: 57,400
CCH Reference - TRC INDIV: 58,002