Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has issued interim guidance on the procedures that manufacturers must use to certify a vehicle as eligible for the new specified qualified plug-in electric vehicle credit under Code Sec. 30. Guidance is also provided to purchasers of qualified vehicles regarding reliance on the manufacturer's certification in claiming the credit.

 
Code Sec. 30 provides a tax credit for 10 percent of the cost (up to $2,500) of a qualified plug-in electric vehicle placed in service by the taxpayer after February 17, 2009. However, the credit is not available for a vehicle placed in service before 2010 if the credit for a qualified plug-in electric drive motor vehicle under
Code Sec. 30D may be claimed for the vehicle. A qualified plug-in electric vehicle includes certain specified electrically powered two-wheeled, three-wheeled, and low-speed vehicles.

  A manufacturer's certification that a vehicle is eligible for the credit must include a statement that the vehicle is made by the manufacturer, as well as the make, model or other identifier of the vehicle. The certification must also include the vehicle's gross weight, the number of wheels, a statement that the vehicle is propelled to a significant extent by an electric motor that draws electricity from a battery, the kilowatt hour capacity of the battery, and a statement that the battery is capable of being recharged from an external source of electricity. With respect to low speed vehicles, the certification must provide a statement that the vehicle is a low speed vehicle within the meaning of federal regulations, and that the maximum speed attainable by the vehicle in one mile is more than 20 miles per hour but not more than 25 miles per hour on a paved level surface.

  The IRS will review and acknowledge the certification presented by a manufacturer within 30 days of receipt of the certification. A manufacturer's right to provide a certification to future purchases of a vehicle will be withdrawn if the IRS determines that a vehicle is not qualified for the credit. Purchasers who acquire vehicles after the withdrawal date may not rely on the certification. However, purchasers may continue to rely on a certification for a vehicle acquired before the withdrawal date even if the vehicle is not placed in service yet or the credit is claimed after the withdrawal date.

  Except for the withdrawal of acknowledgment by the IRS, purchasers of a qualified electric plug-in vehicle may rely on a manufacturer's certification for purposes of claiming the credit. The purchaser may claim the credit in the certified amount with respect to the vehicle if the following requirements are satisfied:

  the vehicle is acquired after February 17, 2009, and before January 1, 2012;

  the original use of the vehicle commences with the taxpayer;

  the vehicle is acquired for use or lease by the taxpayer, and not for resale; and

  the vehicle is used predominantly in the United States.

Notice 2009-58, 2009FED ¶46,424

Other References:

 
Code Sec. 30

  CCH Reference - 2009FED ¶4056B.01

  Tax Research Consultant

  CCH Reference - TRC INDIV: 58,010