The IRS recently passed legislation extending the alternative motor vehicle tax credit available on certain qualified plug-in motor vehicles through January 1, 2012. Under Section 30 of the Internal Revenue Code, qualified plug-in vehicles purchased between February 17, 2009 and December 31, 2011 could be eligible for a tax credit worth $2,500 or more.
While a golf cart may be the first thing that pops into your head, the IRS has specifically defined exactly what kind of plug-in vehicle qualifies. The vehicle must:
- have at least four wheels;
- be manufactured primarily for use on public streets, roads and highways (not for off-road use like the typical golf cart);
- have a maximum speed between 20 and 25 miles per hour;
- must weigh less than 3,000 pounds;
- must be new with no previous owners, and
- must be acquired for use or lease by the taxpayer and not for resale.
So, what qualifies? Think of a golf cart with the works. It must have headlights, seat belts, parking brakes and driver’s side mirrors. These vehicles usually range between $8,000 and $20,000. For more specifics on vehicles that qualify, refer to Internal Revenue Code Section 30 on the IRS website.
The amount of the credit is based on the battery of the vehicle. The credit is worth $2,500 plus additional amounts for kilowatt-hour capacity. Simply stated, the longer the battery lasts on a single charge, the larger your credit could be. There is no limit on how many “golf cart credits” you can receive.
Before making any purchases, always do your homework. Check with the manufacturer to be sure that the vehicle has been certified. Ask to see the acknowledgement that the manufacturer received from the IRS and get a copy for your records. If you would like any further information on this topic, please contact Henssler Financial at 770-429-9166 or [email protected].