Tax Credits for Qualified Plug-In Electric Motor Vehicles

You can get a Federal tax credit of up to $7,500 when you buy a Qualifying Vehicle. It must be an electrically powered motor vehicle for street use, no golf carts. The weight must be less than 14,000 pounds. It has to be propelled primarily by an electric motor drawing power from a battery that has a capacity of at least 4 kw hours, and can be recharged from an external electrical source.

The credit is the sum of $2,500 plus $417 for each kw hour of capacity in excess of 5 kw hours, but not in excess of $5,000; making the maximum Federal credit $7,500. The credit begins to phase-out in the second quarter that a manufacturer sells 200,000 qualifying vehicles after 2009. Electric vehicles have not sold well in the US, so many continue to be eligible for the credit.

If you are interested in the credit to offset the higher cost of the electric vehicle, be sure to contact your licensed tax professional to help with planning before you make your purchase. Your tax professional can help determine the effect on your taxes, that your choice is a qualified vehicle, and whether or not your State offers a similar credit.

Here is a general list of Qualified Vehicles; your specific vehicle and the credit you receive may be different:

Audi A3 e-tron (2016-2017), $4,502

Audi A3 e-tron ultra (2016), $4,502

BMW i3 Sedan with Ranger Extender (2014-2017), $7,500

BMW i3 Sedan (2014-2017), $7,500

BMW i8 (2014-2017), $3,793

BMW X5 xDrive40e (2016-2018), $4,668

BMW 330e (2016-2018), $4,001

BMW i3 (60Ah) Sedan (2017), $7,500

BMW 740e (2017), $4,668

BMW 530e (2018), $4,668

BMW 530e xDrive (2018), $4,668

BMW 740e xDrive (2018), $4,668

MINI Cooper S E Countryman ALL4 (2018), $4,001

FCA North American Holdings, Fiat 500e (2013-2017), $7,500

Chrysler Pacifica PHEV (2017), $7,500

Ford Focus Electric (2012-2017), $7,500

Ford C-MAX Energi (2013-2017), $4,007

Ford Fusion Energi (2013-2018), $4,007

General Motors Cadillac ELR (2014, 2016), $7,500

General Motors Cadillac CT6 PHEV (2017), $7,500

General Motors Chevrolet Volt (2011-2018), $7,500

General Motors Chevrolet Spark EV (2014-2016), $7,500

General Motors Chevrolet Bolt (2017), $7,500

Kia Soul Electric (2015-2017), $7,500

Kia Optima PHEV (2017), $4,919

Mercedes-Benz smart Coupe/Cabrio EV (2013-2016), $7,500

Mercedes-Benz B-Class EV (2014-2017), $7,500

Mercedes S550e PHEV (2015-2017), $4,043

Mercedes-Benz GLE550e 4m PHEV (2016-2017), $4,085

Mercedes-Benz C350e PHEV (2016-2017), $3,000

Mitsubishi i-MiEV [Electric Vehicle] (2012, 2014, 2016, 2017), $7,500

Nissan Leaf (2011-2017), $7,500

Porsche 918 Spyder (2015), $3,667

Porsche Panamera S E Hybrid (2014-2015), $4,752

Panamera 4 E-Hybrid (2018), $6,670

Porsche Cayenne S E-Hybrid (2015-2018), $5,336

Tesla Roadster (2008-2011), $7,500

Tesla Model S (2012-2017), $7,500

TeslaModel X (2016-2017), $7,500

Tesla Model 3 Long Range (2017), $7,500

Toyota Prius Prime Plug-in Hybrid (2017), $4,502

Toyota Prius Plug-in Electic Drive Vehicle (2012-2015), $2,500

Toyota RAV4 EV (2012-2014), $7,500

Volkswagen e-Golf (2015-2017), $7,500

Volvo XC90 or XC90 Excellence (2018), $5,002

Volvo XC60 (2018), $5,002

Volvo S90 (2018), $5,002

Volvo XC-90 T8 Twin Engine Plug in Hybrid (2016-017), $4,585


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