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Old 07-27-2015, 02:48 PM
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Tax credit on a new 2014 electric car

I am considering purchasing a brand new never titled 2014 all electric car. The car has been sitting on the dealer lot for nearly eighteen months. Part of the my decision will be based upon whether or not I would be eligible for the $7500 federal tax credit. My initial thought is that this car is eligible, since I am the first titled owner. Am I correct in my thinking and are there any other issues that I need to investigate? As I read the regulation it doesn't say anything about the model year of the car, just that I be the first titled owner.

Thanks.

Len



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Old 07-28-2015, 11:05 PM
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I am considering purchasing a brand new never titled 2014 all electric car. The car has been sitting on the dealer lot for nearly eighteen months. Part of the my decision will be based upon whether or not I would be eligible for the $7500 federal tax credit. My initial thought is that this car is eligible, since I am the first titled owner. Am I correct in my thinking and are there any other issues that I need to investigate?================>>> yes; the new vehicle has its 'original use' with the taxpayer who's claiming the credit. It can't be for resale, and if it is sold, it's a used car; if you lease, you probably can't claim it and you have to claim the credit for the tax year that the vehicle is placed in service. Electric vehicles purchased in / after 2010 may be eligible for a federal income tax credit of up to $7.5k. The credit amount will vary based on the capacity of the battery used to fuel the vehicle. The tax credit is arguably confusing from the start;it isn't treated as an incentive or rebate to consumers, so you don't get it at the time of purchase. It's not a tax deduction , a reduction in taxable income, either. With a tax credit, you reduce the amount of income tax you owe. If you owe less than that amount for the tax year, you lose the rest of the credit you can get full credit for bmw 2014–15 i3 Sedan; byd motors 2012–15 e6 Electric Vehicle; fiat 2013–15 Fiat 500e; ford 2012–15 Ford Focus EV; gm 2014–15 Chevrolet Spark EV; mercez benz 2014–15 B-Class EV;Mitsubishi 2012, 2014, 2016 i-MiEV;Nissan 2011–15 Leaf;smart usa 2011, 2013–15 fortwo electric vehicle (coupe/cabriolet);tesla motors 2012–14 Model S;Toyota 2012–14 RAV4 EV;

As I read the regulation it doesn't say anything about the model year of the car, just that I be the first titled owner.=======>>as mentioned above. To be included on the federal list of vehicles that qualify, your vehicle must be made by a manufacturer (it can't be a conversion); it must comply with the legal definition of a motor vehicle as per the Clean Air Act, title II; and it must have a gross vehicle weight rating of 14k pounds or less.



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