Federal Tax

Potential Tax Credit for Certain Qualified Plug-In Electric Vehicles

Are you thinking about applying your tax refund toward the purchase of a plug-in electric car or truck? Fortunately, a tax credit is available for qualified vehicles. The base amount of the credit is $2,500 per vehicle. The vehicle must be new and have battery capacity of at least four kilowatt hours. The allowable credit is increased by up to an additional $5,000 per vehicle based on a formula which increases by $417 for every kilowatt hour of battery capacity in excess of five. The total credit is up to $7,500. It is allowed in the year you place the vehicle in service. The vehicle must have a gross weight of less than 14,000 pounds. Click here for a list of qualified vehicles. Contact Cg Tax, Audit & Advisory with questions. © 2021