1st Time Buyers of EV’s and Hybrid Cars Eligible for Tax Credits

1st Time Buyers of EV’s and Hybrid Cars Eligible for Tax Credits

1st Time Buyers of EV’s and Hybrid Cars Eligible for Tax Credits

US environmentally-conscious taxpayers can choose from a variety of vehicles powered solely or partially by electricity.

Some of the cars on this list are “head scratchers”, as in the Porsche 918 Spyder Hybrid base priced at $845,000 (pictured above), humm!

In addition to the perceived ecological benefits, buyers if new plug-in cars can also benefit from a federal government tax credit, authorized by Section 30D of the US tax code.

Recently the US Internal Revenue Service updated the list of vehicles eligible for the so called “eco” credit.

The 30D credit, which is claimed on Form 8936 aka Qualified Plug-in Electric Drive Motor Vehicle Credit, is equal to the sum of (1) $2,500 plus (2) for a vehicle that draws propulsion energy from a battery with not less than 5 kw hours of capacity, $417 for each kw hour of capacity in excess of 5 kw hours, not to exceed $5,000.

The maximum plug-in vehicle credit is $7,500, regardless of weight.

To qualify for this eco credit, several requirements must be met, as follows:

  1. The motor vehicle with at least 4 wheels must be manufactured primarily for use on public streets, roads and highways. Golf carts do not qualify.
  2. The vehicle is treated as a motor vehicle for purposes of Title II of the Clean Air Act. This requirement effectively bars certain low-speed motor vehicles from the credit.
  3. The vehicle has a gross vehicle weight rating (GVWR) of less than 14,000 pounds.
  4. The vehicle is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of at least 4 kilowatt (kw) hours and is capable of being recharged from an external source of electricity.
  5. The vehicle is used predominantly in the US
  6. The taxpayer is the 1st buyer and original user of the vehicle, acquired it for use or lease and not for resale.

This credit begins to phase out for a manufacturer’s vehicles when at least 200,000 qualifying vehicles have been sold for use in the US

  • Audi A3 e-tron (2016), $4,502
  • BMW i3 Sedan with Ranger Extender (2014—2016), $7,500
  • BMW i3 Sedan (2014—2016), $7,500
  • BMW i8 (2014—2016), $3,793
  • BMW X5 40e (2016), $4,668
  • BMW 330e (2016), $4,001
  • Chrysler Group, Fiat 500e (2013—2015), $7,500
  • FCA North American Holdings, Fiat 500e (2016), $7,500
  • Ford Focus Electric (2012—2016), $7,500
  • Ford C-MAX Energi (2013—2016), $4,007
  • Ford Fusion Energi (2013—2017), $4,007
  • General Motors Cadillac ELR (2014, 2016), $7,500
  • General Motors Chevrolet Volt (2011—2017), $7,500
  • General Motors Chevrolet Spark EV (2014—2016), $7,500
  • Hyundai Sonata Plug-in Hybrid Electric Vehicle (2016), $4,919
  • Kia Soul Electric (2016), $7,500
  • Mercedes-Benz smart Coupe/Cabrio EV (2013—2016), $7,500
  • Mercedes-Benz B-Class EV (2014—2016), $7,500
  • Mercedes S550e PHEV (2015—2016), $4,042.90
  • Mitsubishi i-MiEV [Electric Vehicle] (2012, 2014, 2016), $7,500
  • Nissan Leaf (2011—2016), $7,500
  • Porsche 918 Spyder (2015), $3,667
  • Porsche Panamera S E Hybrid (2014–2015), $4,751.80
  • Porsche Cayenne S E-Hybrid (2015), $5,335.60
  • Tesla Roadster (2008—2011), $7,500
  • Tesla Model S Vehicle (2012—2016), $7,500
  • Toyota Prius Plug-in Electic Drive Vehicle (2012—2015), $2,500
  • Toyota RAV4 EV (2012—2014), $7,500
  • Volkswagen e-Golf (2015—2016), $7,500
  • Volvo XC-90 T8 Twin Engine Plug in Hybrid (2016), $4,585

Again, some of the cars on this list are “head scratchers”, as in the Porsche 918 Spyder Hybrid base priced at $845,000, humm!

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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3 Responses to "1st Time Buyers of EV’s and Hybrid Cars Eligible for Tax Credits"

  1. Tyler Fawkes   June 24, 2016 at 10:46 am

    Don’t forget, the U.S. incentives are only good as long as the manufacturer has sold less than 200,000 EV units in the U.S.. Some of the cars on this list will reach the 200,000 sold threshold before others. If someone is sitting on the fence about buying one, now is definitely the time to buy.

    I recommend leasing over buying, even though there aren’t any tax credits. The technology is improving quickly. The resale values are horrible because no one wants to be stuck with the old technology and leasing means never replacing a battery pack.

    If someone is absolutely dead set against leasing, the best electric deals out there are used EVs. Most are slightly used. People decide pretty quickly whether or not driving electric is for them. The discounts are generally huge and someone else has already eaten the depreciation which is probably more than the tax credit anyway.

    • Paul Ebeling   June 26, 2016 at 1:50 am

      Of course, it is stated in the article. Porsche will make less than 50 of their $845,000 spyder that is included for IRS tax credits, Musk will never make 200,000 cars… Have a happy day, Paul

    • Paul Ebeling   June 26, 2016 at 1:51 am

      My recommendation is to not buy one ever the claim that EV’s are clean is Bunk!

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