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:

  1. 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.

  2. 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.