Tax credit for Electric Cars new for 2009

From Lexis/Nexis news service

Can't wait to check on this!


A new credit is added for plug-in electric motor vehicles [IRC § 30D]. For each qualifying vehicle placed in service during the year, taxpayers are eligible for a credit of $2,500 plus $417 for each kilowatt hour of traction battery capacity in excess of 4 kilowatt hours [IRC § 30D(a)(2)]. The credit has a cap from $7,500 to $15,000, depending on the weight of the vehicle [IRC § 30D(b)(1)]. The credit is further reduced after 250,000 qualified vehicles have been sold for use in the US [IRC § 30D(b)(2)]. To the extent the credit is applied to depreciable property (i.e. property used in a trade or business), the credit is part of the general business credit [IRC § 38(b)(35)]. The remainder is treated as a personal credit [IRC § 30D(d)]. Vehicles for which this credit is taken are not eligible for the alternative motor vehicle credit [IRC § 30B(d)(3)(D)].