You can receive a non-refundable tax credit for an all-electric and plug-in vehicle.
If you purchased a car or truck with the following, you may be eligible for this credit:
- at least four wheels
- has a gross vehicle weight of less than 14,000 pounds
- draws energy from a battery with at least 4 kilowatt hours
- may be recharged from an external source
- purchased it in or after 2010
- began driving it in the year you’re claiming the credit
Click here for a list of qualifying vehicles by the IRS.
How much is the credit?
You can receive between $2,500 and $7,500 for this credit. However, it depends on the capacity of the battery. This credit will start to phase out once that manufacturer sells 200,000 qualified vehicles.
Form 8936 is used to determine the calculation of your credit. Once your tentative credit is calculated in the first portion, it will then depend on your business and personal use of your vehicle.
