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elizabethcariasa · 4 years

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Audi, MINI & Toyota Prius models added to IRS electric vehicle tax credit list

No gasoline necessary for electric vehicles like this Chevrolet Bolt, which instead is plugged in to recharge for the road. If you opt for an IRS-certified electric auto or light truck, you might get some tax break help on your purchase.

Climate change is getting more coverage lately.

People are paying attention to what's happening with Mother Nature here in the United States thanks to the opposing environmental takes by the two presidential contenders. On a more personal level for many Americans is that we're in the midst of one of the most active hurricane seasons ever — we're already up to Vicky for named storms! — at the same time that much of the West Coast is engulfed in wildfire flames.

These factors have prompted many climate-concerned individuals to do what they can to reduce greenhouse gas emissions, which even U.S. government scientists still say are the most significant driver of observed climate change since the mid-20th century.

One of the easiest ways to do this is by switching to electric vehicles. And Uncle Sam is helping by offering a federal tax credit for the purchase of certain plug-in autos.

Tax breaks for environmentally-friendly vehicles: This credit ranges from $2,500 to $7,500. That's very good news since a credit provides a dollar-for-dollar reduction of any tax you might owe. In many cases, that could zero out what a taxpayer might owe.

But, and you knew since we're talking tax breaks there was a but, there are some limits to this environmentally friendly tax credit.

First, it applies only to purchases (or leases) of new electric passenger vehicles and light trucks. The Internal Revenue Service says a qualifying vehicle must:

have at least four wheels,

be propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity, and

have a gross vehicle weight of less than 14,000 pounds.

Second, the Internal Revenue Code Section 30D that provides the tax credit for Qualified Plug-in Electric Drive Motor Vehicles is, no surprise, a bit complicated.

The amount of the credit depends on how much propulsion energy a vehicle draws from a battery with at least 5 kilowatt hours of capacity, with added credit amounts for each added kilowatt hour of battery capacity in excess of 5 kilowatt hours.

I don't know about y'all, but my eyes start to glaze over at a certain point; I just want to put my key in the ignition and drive. But the bottom line is that the electric vehicle credit could be as much as $7,500.

Third, it starts to phase down and eventually, after six quarters of credit reductions, is eliminated for an auto manufacturer's plug-in vehicles that top more than 200,000 sales. That's already happened for the more popular electric autos. Both Tesla and GM tax credits took value hits when their eligible vehicles passed the 200,000-sold threshold in 2018.

More tax-credit eligible vehicles added: But there is still some good tax news for electric vehicle fans.

The IRS has added Audi, MINI and Toyota Prius models to the list of vehicles that are eligible for the plug-in electric drive motor vehicle credit. The new qualifying autos are:

The 2020 Audi e-tron Sportback is eligible for the maximum credit of $7,500. The 2020 Audi A8L PHEV and AudiQ5 PHEV are eligible for a credit of $6,712.

The 2020 MINI Cooper S E Hardtop 2 Door and MINI Cooper S E Hardtop are eligible for the maximum credit of $7,500. The 2020 and 2021 MINI Cooper S E Countryman ALL4s are each eligible for a credit of $5,002.

The 2021 Toyota RAV4 Prime Plug-In Hybrid is eligible for the maximum credit of $7,500. The 2020, 2021 Prius Prime Plug-in Hybrid is eligible for a credit of $4,502.

These electric plug-ins have been added to the list of tax-credit-eligible vehicles that are made by the following 37 manufacturers:

American Honda Motor Co., Inc.

FCA (Fiat Chrysler Automobiles) North America Holdings, LLC

Polestar Automotive USA Inc.

AMP Electric Vehicles, Inc.

Fisker Automotive, Inc.

Porsche Cars North America, Inc.

Audi of America, LLC

Ford Motor Company

Smart USA Distributor, LLC

Azure Dynamics, Inc.

General Motors, LLC*

Subaru Corporation

BMW of North America

Hyundai Motor America

Tesla, Inc.*

Bentley Motors, Inc.

Jaguar Land Rover North America, LLC

Think NA

Boulder Electric Vehicles, Inc.

Kandi (Zhejiang Kandi Vehicles Co., Ltd.)

Toyota Motor Sales, U.S.A., Inc.

BYD Motors, Inc.

Karma Automotive LLC

VIA Motors, Inc.

CODA Automotive

Kia Motors America, Inc.

Volkswagen Group of America

Electric Vehicles International

Mercedes-Benz USA, LLC

Volvo Car North America, LLC

Electric Mobile Cars

MINI USA

Wheego Electric Cars, Inc.

Ferrari North America, Inc.

Mitsubishi Motors North America, Inc.

Zenith Motors, Inc.

Nissan North America

*credit phased out for some purchases

Yeah, I didn't have any idea that were that many electric automakers, either. You can get the specifics on each of the qualifying vehicles and maximum available tax credit at the IRS' special (and regularly updated; the last change was on Sept. 11) IRC 30D New Qualified Plug-In Electric Drive Motor Vehicle Credit web page.

If you're not ready to buy an electric auto just yet, you also can track your favorite manufacturer's electric vehicle quarterly sales to see if it's getting close to triggering the reduced tax credit.

Filing for the tax credit: When you do buy a credit-eligible electric auto, you'll claim your tax break by filing Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two- or Three-Wheeled Plug-in Electric Vehicles).

Yep, that's a mouthful of an official title for a page-and-a-half form, shown below. But size notwithstanding, since more folks might be using Form 8936 next filing season and it's got a connection to the environmental debate now underway, it's this week's Tax Form Tuesday featured document.

Form 8936 can be used by both individual taxpayers and businesses, specifically Partnerships and S corporations, that purchase an eligible vehicle to do their jobs. (Who else is seeing in their heads the Amazon television commercial about its electric delivery vans?)

Individual taxpayers must meet the following requirements to qualify for the credit:

You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit.

You placed the vehicle in service during your tax year.

The vehicle is manufactured primarily for use on public streets, roads, and highways.

The original use of the vehicle began with you.

You acquired the vehicle for use or to lease to others, and not for resale.

You use the vehicle primarily in the United States.

Certification required, too: You also need proof that the vehicle qualifies. The IRS says that in most cases, a buyer of an electric auto can rely on the manufacturer's (or, in the case of a foreign manufacturer, its domestic distributor's) certification to the IRS that a specific make, model and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies.

That's what the IRS uses to update its online page tracking credit eligible vehicles. But you as the vehicle buyer also should get from the seller a copy of the IRS letter acknowledging the certification of the vehicle.

The Form 8936 instructions provide details on filling out the form if you're still doing that the old-fashioned way. Most of us rely on software or tax preparers who use software; they'll walk us through the form completion.

Finally, while this is a valuable tax credit, it is not refundable. That means that if you have more credit for your electric plug-in vehicle than your tax liability, you lose the excess credit. It can't create a tax refund for you. Neither can it be carried back or forward to other tax years.

You also might find these items of interest:

Electric vehicle tax credits favor the wealthy

17 states now impose some fees on electric autos

IRS let up to $83M in improper electric vehicle tax credits slip through, says watchdog report

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I am 16, female and driving a sports car [[camaro]]? please give an average for texas and several different companys!""

Can i get car insurance as a learner driver?

i am a learner driver and was wondering if i can get learner car insurance if i got a car and a qualified driver to teach me

Insurance for my baby?

I am researching insurance options for my baby. The baby will be born in few months. I know that the baby will be insured 30 days after he is born. This is my question. Should I find an individual plan for the baby or should I add the baby to my insurance? I did not even know one can add the baby to an existing insurance. I am just trying to find the best deal. If I have to have an individual plan for the baby, I am looking only for Blue Cross or Blue Shield of California (PPO only). If you have any suggestions, please share. Thank you""

Car insurance for a non working vehicle?

My car needed a major repair last fall. I work from home and have been trying to pay off student loans so I decided to do without a car for 6 months since I live in a convenient location- I just received my tax return and can afford the major repair. I stopped my car insurance while I wasn't driving since it was $125/mo and I now need to start it back up. I am switching companies since I really didn't like mine- I just got to the questions about insurance lapse does this apply to me since my car wasn't working? I haven't returned my form yet. I hope I didn't screw this up, a friend just told me I should have possibly kept a storage coverage that my rates might skyrocket. It's an older car with no loan attached. I live in MN, perfect driving record, was with the same company for 25 years and had never missed a payment. If it is considered a lapse is there a way to get around it legally like giving/selling my car to my boyfriend and then listing me as a driver so I can use it when needed? We don't live together but he did most of the driving when we did use it- it's not worth much, maybe a few thousand dollars at most- maybe I'd be better off selling my car and getting a new (used) one so I don't have to explain a gap? Thanks.""

How do I get car insurance?

I am 18. I am not in college nor do I have a diploma. I don't start college till Fall 2011. Is it possible that I can still get car insurance? If so, how?""

Hydetown Pennsylvania Cheap car insurance quotes zip 16328

Insurance to drive another car?

I work on a farm and I have to drive across fields and stuff to get around. Sadly, I currently have to do this in my own car so I was thinking of buying a cheap car so I don't ruin my actual car in the process. I can't leave the car at the farm, so it would need to be road legal (taxed, MOTed and Insured) Is there any insurance you can get where you can be insured on both cars but on one policy? (Sort of like what car traders use where they can drive any car that isn't registered to them)""

Best place to Compare Car Insurance Quotes Online?

Is there a site where I can compare car insurance quotes or where I can compare what's offered by several car insurance companies? There's a huge difference in car insurance quotes depending on the provider you use and what level of cover you want and obviously I do not want to pay more than I have to. I searched for car insurance comparison sites but there are a lot to choose from and a lot more still where you just enter general stats like age and area, so can someone save me some time and let me know of a good website where I can compare car insurance quotes that are exact to my circumstances. Thanks!""

How much did you pay for auto insurance at 18?

I know that it differs depending on where you live, but i just wanted to get a general idea of how much it would be per month. I'm not gonna be under my parent's insurance policy either. so i know that's going to get pretty expensive. Also, i have a 4 door sedan type car. thanks!""

Well for my first car what should it be? thats affordable and wont kill me in insurance.?

I love mustangs as i said before in my last question and i would like to know any suggestions to get other than that (that's a sporty stylish car) with leather seats and tiny (something like a mustang).

How much life insurance is sufficient?

my husband just got a raise and we are thinking about raising our life insurance. I have 6 children. what is the best way to estimate how much is enough.

Will 'fail to stop at red light' for 1st time affect my GEICO insurance rate ?

I just switched to GEICO last week and unfortunately got a 'fail to stop red light' citation from SoCal DMV... they required me to pay 480$ for the ticket and 535$ + course fee for traffic school if I need one. I really don't want to pay for the traffic school but afraid it will affect my insurance rate later. currently I am paying 760$ every 6 months for full coverage on 2 mid-size cars. Could anyone give me some idea for this? PS: I had 4 years driving experience and kept clear record with allstate before getting this ticket...

Help with car insurance?

It's my 17th birthday tomorrow, I am going to use the money I get for drivin lessons. But what I want to know is; Would I get insured on a range rover sport at my age and how much would it cost? This is the car I really want but I don't know if I'd get insured for it. I don't mind waiting, but if I can drive one now thatd be great! Thanks :)""

How will the grandfathered in medical insurance work for Obamacare?

I have had an individual plan since 2004. I just read you can be grandfathered into plans that don't provide coverage options required under the Affordable Care Act. This sure doesn't sound good!! It sounds like if I want protection, I will have to pay twice as much as I am now on the exchange, which I thought was supposed to lower cost. Obama said someone can keep the insurance they have if they'd like, which is half the price as the exchange, so who wouldn't want to pay half as much? If it's not covered under the Affordable Care Act, does that mean I still could be dropped or denied? Why call it the Affordable Care Act when it is only affordable to very low income people? I am middle class, and I read that only 9% of Americans make between $50,000 to $75,000. Do you think this sounds right? This is hard for me to believe.""

Question about my 18 year old and insurance

I have an 18 year old who takes ADHD medication which without insurance costs well over $300 a month. She is not interested in going to college at this point so I'm not sure how much longer I can keep her on my insurance plan. Assuming it takes her awhile to find a job with good insurance does anyone have any suggestions on how to make her medical needs affordable for her?

**Average Homeowners Insurance for Condo in DC???**?

If the condo was $50,000 1bd/1bth in washington DC not many amenities cept fire alarm and enxtinguisher. once car garage.""

Should I call my insurance company?

Last fall I hit a raccoon really hard and it ruined my front spoiler and my radiator, the damage was under my deductable so I decided to just buy the parts on my own. Since I don't drive the car in the winter I parked the car over the winter I decided to just put the car into storage and buy the parts in the spring, so I bought the parts, installed them and now I found out that my motor is ruined from the car overheating after I hit the raccoon. and its going to cost a ton of money to get everything fixed on this car. Would I be able to claim something like this even though it happened 6 months ago?""

Can you get rental car insurance without having regular auto insurance!?

I don't own a car, but I plan on renting one real soon. I was just wondering if its required to have some auto insurance already prior to getting CDW for the rental.""

How much will my Insurance go up?

im 18 years old on my mothers policy been driving 1 year crashed my car into a old Escort which his car was called a Rite Off. His rite of value for his car is 950. my damage i fixed with my old money as my insurance did not cover my cars damage. my Current Insurance price is 1250(pa). How much will my insurance go up by next time round...next year in September?

""Do I have to insure my 19 year old son, if he doesn't drive my wife's vehicle or my own?""

Do I have to insure my 19 year old son, if he doesn't drive my wife's vehicle or my own?""

How much for insurance on a Scion Tc? Does it get good MPG?

I am looking into getting a Scion Tc, I went to the dealer to look at the car and the sales man said that insurance will be a lot for a new scion. But he didn't know how much. I am 18, female, I will have my license for almost 2 years(by the time I get a new car), I have no tickets and have never been pulled over by a cop. And I live in California (if that makes a difference) Instead of getting a brand new Scion I am looking into a used one. A 2006 or 2007. I have Wawanesa car insurance. So does anyone know how much it would be a month? Oh, and from someone who has a Scion Tc, does it get good gas millage? It will be a deal breaker for me if it doesn't.""

How to get Cheap Car Insurance at 17?

Hello, I have tried everything to get chear car insurance at 17 but it seems to stay in the 2500+ Area.... How can I get it cheaper? I have had my license for a month but feel frustrated that I can't get a car because the insurance is too high!! Can anyone help?""

How does turning 25 affect your car insurance premium?

I turn 25 at the end of the year and am planning on buying a brand new car this summer and am wondering how it will be affected. Thanks!

Car Insurance?

Im Thinkin Of Buyin My First Car, but my Insurance Is costing 4000, my mates is getin it for 1300, when i tried the same insurance company as him, i got 2500, How could i lower this?""

Why are teenage girls insurance rates cheaper than boys?

It is a well known fact that teen girls are becoming more agressive in driving habits and accident statistics are up so why do they not share the same insurance rates?

Does 1500 seem ok insurance?

ive got multiple quotes for 1st car 1st year driving. its going to be a 1.1 pug 106 independence and have been quoted 1500 is that reasonable? how much did your 1st car insurance year cost you? im 23.

NO Car insurance! Will i get 6 points?

I was a named driver on my Dad's insurance, he had not paid one of the instalments for the insurance but did know! I was driving the car when i got pulled over. I did not no i had no insurance as i did not deal with the payments. Will i still get 6 points as i need my licence to get to university :(""

Dose anyone know any cars with cheap insurance for a young driver (under 1000pa)?

Im looking for a car with a small engine so the insurance will be as low as possible. can anyone think of any good cars.

Who has the cheapist insurance. for min.coverage?

Trade Cars and Transferring insurance?

Okay so I have a 1966 Thunderbird that I recently got running and insured in order for me to drive it around to sell it. Now I have a man who wishes to trade me for a 64 Thunderbird + $ however the 64 Thunderbird is not quite in drive able condition yet. Since I just purchased the insurance and plates for a whole year would it be possible to transfer the insurance to the other car with little to no cost?

What is the safest cheapest car to buy and also for cheapest insurance as a first car?

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