Federal Tax Credit For Electric Cars Irs
All electric and plug in hybrid cars purchased new in or after 2010 may be eligible for a federal income tax credit of up to 7 500.
Federal tax credit for electric cars irs. For vehicles acquired after 12 31 2009 the credit is equal to 2 500 plus for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity 417. Qualified plug in electric drive motor vehicles irc 30d internal revenue code section 30d provides a credit for qualified plug in electric drive motor vehicles including passenger vehicles and light trucks. Plug in electric drive vehicle credit irc 30d. The irs tax credit is for 2 500 to 7 500 per new ev electric vehicle purchased for use in the u s.
Beginning on january 1 2019. The credit is 10 of the purchase price of the vehicle with a maximum credit of 2 500. You must have purchased the vehicle in 2012 or 2013 and begun using it in the year in which you claim the credit. For vehicles acquired after december 31 2009 the credit is equal to 2 500 plus for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity 417 plus an additional 417 for each kilowatt hour of.
The credit amount will vary based on the capacity of the battery used to power the vehicle. Form 8936 is used to figure credits for qualified plug in electric drive motor vehicles placed in service during the tax year. The credit will begin to phase out when at least 200 000 qualifying vehicles manufactured by each manufacturer have been sold in the u s.