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 credit for electric cars irs.

Form 8936 is used to figure credits for qualified plug in electric drive motor vehicles placed in service during the tax year. 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 credit amount will vary based on the capacity of the battery used to power the vehicle.

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. 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. The credit is 10 of the purchase price of the vehicle with a maximum credit of 2 500. Federal tax credits for new all electric and plug in hybrid vehicles federal tax credit up to 7 500.

You must have purchased the vehicle in 2012 or 2013 and begun using it in the year in which you claim the credit. Beginning on january 1 2019. 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.