Federal Tax Credit For Electric Cars Irs

Plug in electric drive vehicle credit irc 30d.

Federal tax credit for electric cars irs.

Information about form 8936 qualified plug in electric drive motor vehicle credit including recent updates related forms and instructions on how to file. Federal tax credits for new all electric and plug in hybrid vehicles federal tax credit up to 7 500. Beginning on january 1 2019. Internal revenue code section 30d provides a credit for qualified plug in electric drive motor vehicles including passenger vehicles and light trucks.

The irs tax credit is for 2 500 to 7 500 per new ev electric vehicle purchased for use in the u s. 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. 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.

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. Form 8936 is used to figure credits for qualified plug in electric drive motor vehicles placed in service during the tax year. You must have purchased the vehicle in 2012 or 2013 and begun using it in the year in which you claim the credit.