$7,000 Tax credit for electric car buyersPosted: Updated:
PHOENIX -- In 2009 Congress approved a $7,000 tax credit as a part of the American Recovery and Reinvestment Act. The credit is intended to help off-set the cost of electric vehicles. As new vehicles like the Chevy Volt and Nissan Leaf hit showroom floors this year, consumers may find this to be an attractive reason to consider going electric.
According to the Internal Revenue Service, the Plug-in Electric Drive Vehicle Tax Credit (IRS Section 1141) states: Credits for qualified plug-in electric drive vehicles purchased after Dec. 31, 2009 are now available. To qualify, vehicles must be newly purchased, have 4 or more wheels, have a gross vehicle weight rating of less than 14,000 pounds, and draw propulsion using a battery with at least four kilowatt hours that can be recharged from an external source of electricity. The minimum amount of the credit for qualified plug-in electric drive vehicles is $2,500 and the credit tops out at $7,500, depending on the battery capacity. The full amount of the credit will be reduced with respect to a manufacturer’s vehicles after the manufacturer has sold at least 200,000 vehicles.