Electric Vehicle Tax Benefits

Looking for a tax break? In keeping with the government's commitment to finding alternative sources of energy to reduce our nation's environmental footprint, federal agencies have offered a variety of tax credits for the purchase of qualified electric vehicles. Buying a new low-speed vehicle (LSV), neighborhood electric vehicle (NEV) or electric car could provide you with money-saving tax incentives. At Moto Electric Vehicles, we make applying for an electric vehicle tax credit easy using the IRS tax form 8834 to apply for the latest tax benefits offered for the purchase of qualified electric vehicles. Please read the form thoroughly to ensure the electric utility vehicle that you are purchasing qualifies for this tax incentive program. You can also use our website's convenient "Live Chat" feature for a prompt response to your questions or call us direct at (904) 247-1818.

The American Recovery and Reinvestment Act of 2009

In 2009, the American Recovery and Reinvestment Act (ARRA) created a two new tax credits to benefit owners of a variety of electric vehicles:

Section 1141 - Plug-In Electric Drive Vehicle Credit
The new law modifies the credit for qualified plug-in electric drive vehicles purchased after Dec. 31, 2009. To qualify, vehicles must be newly purchased, have four or more wheels, have a gross vehicle weight rating of less than 14,000 pounds, and draw propulsion using a battery with at least four kilowatt hours that can be recharged from an external source of electricity. The minimum amount of the credit for qualified plug-in electric drive vehicles is $2,500 and the credit tops out at $7,500, depending on the battery capacity. The full amount of the credit will be reduced with respect to a manufacturer's vehicles after the manufacturer has sold at least 200,000 vehicles.
Section 1142 - Plug-In Electric Vehicle Credit
The new law also creates a special tax credit for two types of plug-in vehicles - certain low-speed electric vehicles and two- or three-wheeled vehicles. The amount of the credit is 10 percent of the cost of the vehicle, up to a maximum credit of $2,500 for purchases made after Feb. 17, 2009, and before Jan. 1, 2012. To qualify, a vehicle must be either a low speed vehicle propelled by an electric motor that draws electricity from a battery with a capacity of 4 kilowatt hours or more OR be a two- or three-wheeled vehicle propelled by an electric motor that draws electricity from a battery with the capacity of 2.5 kilowatt hours. A taxpayer may not claim this credit if the plug-in electric drive vehicle credit is allowable.

For more information on these ARRA provisions, visit IRS.gov.

Available Tax Credits:

Model Year	Vehicle Models	Credit Amount
2009, 2010	Low Speed Vehicle 2 Passengers	10% (up to $2500)
2009, 2010	Electro Neighbor Buddy Vehicle 2 Passengers	10% (up to $2500)
2009, 2010	Low Speed Vehicle 4 Passengers Low Speed Vehicle 4 Passengers Bubble Buddy LE	10% (up to $2500)
2009, 2010	Electro Neighbor Buddy Vehicle 4 Passengers Back to Back Electro Neighbor Buddy Vehicle 4 Passengers Forward Facing	10% (up to $2500)
2009, 2010	Low Speed Vehicle 6 Passengers Electro Neighbor Buddy Vehicle 6 Passengers	10% (up to $2500)
2009, 2010	Low Speed Vehicle 6 Passenger Classic Roadster Low Speed Vehicle 8 Passenger Classic Roadster	10% (up to $2500)
2009, 2010	Low Speed Vehicle Security Buddy 4 Passengers Low Speed Vehicle Police Buddy 4 Passengers Low Speed Vehicle Electro Enclosed Police 4P LQ Low Speed Vehicle Paramedic Buddy 3 Passengers	10% (up to $2500)
2009, 2010	Electro Utility Buddy Electro Utility Buddy Deluxe	10% (up to $2500)
2009, 2010	Low Speed Vehicle Delivery Buddy 2 Passengers	10% (up to $2500)

Note: Before making any electric vehicle purchase, consult your tax advisor to determine your qualification for any tax credit and to clarify the benefits that may be available to you.