Are You Driving A Tax Credit?

Sandy Botkin
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Our tax law provides a credit for Qualified Plug-in Electric Drive Motor Vehicles including passenger vehicles and light trucks. 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, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500. (Code Sec. 30D(b))

The credit begins to phase out for a manufacturer’s vehicles when at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009). (Code Sec. 30D(e))

IRS maintains a website in which it indicates which particular models by which particular manufacturers qualify for the credit and how much credit each model qualifies for.

IRS publishes an updated listing. The government fuel economy website has now updated its listings.

Manufacturers of the vehicles on the website have provided IRS with appropriate information and have received IRS acknowledgement of the vehicles’ eligibility for the credit and the amount of the qualifying credit.

Here is a list of the manufacturers who have one or more vehicles that qualify:

  • American Honda Motor Co., Inc.
  • AMP Electric Vehicles, Inc.
  • Audi of America, LLC
  • Azure Dynamics, Inc.
  • BMW of North America
  • Boulder Electric Vehicles, Inc.
  • BYD Motors, Inc.
  • CODA Automotive
  • Electric Vehicles International
  • Electric Mobile Cars
  • Ferrari North America, Inc.
  • FCA (Fiat Chrysler Automobiles) North America Holdings, LLC
  • Fisker Automotive, Inc.
  • Ford Motor Company
  • General Motors, LLC- Phase Out Initiated
  • Hyundai
  • Jaguar Land Rover North America, LLC
  • Kandi (Zhejiang Kangdi Vehicles Co., Ltd.)
  • Karma
  • Kia Motors America, Inc.
  • Mercedes-Benz USA, LLC
  • Mitsubishi Motors North America, Inc.
  • Nissan North America
  • Polestar Automotive USA Inc.
  • Porsche Cars North America, Inc.
  • Smart USA Distributor, LLC
  • Subaru Corporation
  • Tesla, Inc. – Phase Out initiated
  • Think NA
  • Toyota Motor Sales, U.S.A., Inc.
  • VIA Motors, Inc.
  • Volkswagen Group of America
  • Volvo Cars of North America, LLC
  • Wheego Electric Cars, Inc.
  • Zenith Motors, Inc.

Here is a sample listing of particular models and the amount of the credit those models qualify for:Toyota Motor Sales, U.S.A., Inc.

2017, 2018, 2019, or 2020 Toyota Prius Prime Plug-in Hybrid = $4,502

2012, 2013, 2014, or 2015 Toyota Prius Plug-in Electric Drive Vehicle = $2,500

2012, 2013, or 2014 Toyota RAV4 EV = $7,500

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