Tax Tips: Income Tax Credit for Qualified Plug-in Electric Driven Motors

Qualified Plug in Electric Drive Motor Vehicles, including Passenger Cars and Light Trucks, are eligible for a credit under Internal Revenue Code Section 30D.   

For qualifying plug-in electric drive motor vehicles that you put into service during your tax year, use Form 8936 to calculate your credit.   

From $0 to $7,500, this non-refundable credit is available. 

• The eligibility for the electric drive motor credit tax credit is determined by Internal Revenue Code 30D (a). 
• Passenger cars, light trucks, and two-wheeled vehicles can all use this credit. 
• For a manufacturer who sold more than 200,000 qualifying four-wheeled electric plug-in vehicles, the tax credit phases out. To find out which manufacturer is being phased out, visit https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit.
• Form 8936, entitled "Qualified Plug-in Electric Drive Motor Vehicle Credit," must be completed by the taxpayer. The 01/2022 revision of this form. 
• The brand-new four-wheel vehicle ought should 
• primarily driven by an electric motor that gets power from a battery with a minimum capacity of 4 kilowatt hours and the ability to be replenished by an external power source, and 
• a vehicle with a gross weight under 14,000 pounds. 
• manufactured with public streets, roads, and highways in mind. 
• The brand-new two-wheel vehicle ought should 
• capable of accelerating to a speed of 45 mph or more, 
• primarily driven by an electric motor that receives power from a battery with a minimum capacity of 2.5 kilowatt hours and the ability to be recharged by an external power source, and 
• a vehicle with a gross weight under 14,000 pounds. 
• The taxpayer 
• must be the vehicle's owner. Only the lessor, not the lessee, is eligible for the credit if the car is leased. 
• The car must be put into use during the tax year. 
• Must the first owner of the vehicle 
• purchased the automobile not for resale, but for personal use or to lease to others. 
• must primarily utilize the car in American soil.