Shopping for a new car?
When budget planning for a new car, you probably realize you won’t find anything cheap…that operates safely! You may even consider an electric vehicle to avoid the uncertainty of gas price fluctuations.The government encourages you to look at this change! Plug-in electric vehicles offer significant tax credits, which may help sway you if you’re on the fence.Not all automobiles are eligible, but these made the list: Audi, BMW, Chrysler-FCA, Ford, General Motors, Hyundai, Kia, Mercedes, Mitsubishi, Nissan, Porsche, Tesla, Toyota, Volkswagen, and Volvo.Credits range from $2,500 to $7,500. Figure your exact credit amount by adding:
- $2,500 for a qualified vehicle, plus
- $417 for each kilowatt (kw) hour of battery capacity above five kw hours, up to $5,000.
Restrictions exist, of course. Eligible vehicles:
- Must be manufactured primarily for public roads and highways and operate with at least four wheels;
- Are treated as motor vehicles for purposes of Title II of the Clean Air Act;
- Have a gross vehicle weight rating of less than 14,000 pounds; and
- Are propelled to a significant extent by an electric motor that draws electricity from a battery with capacity of at least four kw hours and can be recharged from an external source of electricity.
As you see, low-speed motor vehicles, such as golf carts, can’t get the credit.To receive it, you must also be the car’s first owner. Used cars, dealers, and vehicles bought for resale don’t qualify.Here’s another potential snag: the credit starts to phase out after the manufacturer sells its 200,000th electric drive motor vehicle for use in the United States.If your heart’s set on a particular car, check with the manufacturer to confirm your purchase qualifies for the full credit.As you’re spinning your new wheels, tax time will inevitably roll around again, and you may need help calculating all the deductions you’re entitled to. Contact the experienced tax accountant team at Patrick & Robinson CPAs for assistance: Office@CPAsite.com or (904) 396-5400.
