Two New Tax Credits in the Works for Electric Vehicles
According to the IRS, there are two new tax credit in the works which could offset the price to plug-in electric vehicles using certain types of batteries, if you purchase in 2009. They were created by the Emergency Economic Stabilization Act of 2008 (EESA) and the American Recovery and Reinvestment Act of 2009 (ARRA).
The credit from the EESA is for vehicles that have at least four wheels, and that draw propulsion using a rechargeable traction battery with at least four kilowatt hours of capacity (technical language alert!) This will result in a 2009 tax credit of $2,500 (min) to between $7,500 and $15,000 (max) - amount depends on the weight of the vehicle and the capacity of the battery.
The credit from the ARRA is for low-speed or two- or three-wheel electric vehicles (scooters) which were purchased after February 17, 2009 and before January 1, 2012. The credit is equal to 10% of the cost of the vehicle, capping out at $2,500. The techie stuff: the vehicle must be either a low-speed vehicle that is propelled to a significant extent by a rechargeable batter with a capacity at least 4 kilowatt hours or be a two- or three-wheeled vehicle that is propelled to a significant extent by a rechargeable batter with a capacity of at least 2.5 kilowatt hours. (Huh?)
The bottom line for both credits: if you buy a low-speed four-wheeled vehicle that is manufactured for use on public streets, roads, and highways (no golf carts, people), it could quality for the EESA credit and the ARRA credit (if purchased after 2/17/09). But, you can't claim both credits for the same vehicle. More guidance from the IRS to come.
I guess this is good - we need incentives for people to make the switch from gas guzzler to low-impact alternatives. But, the technical wording has me quite confused - sounds like you need to be a physicist to figure out which vehicle to buy. I have no idea what a lot of that propulsion verbiage is all about. Sadly, I would probably buy the wrong thing! I will do some research, and see what type of vehicles actually fall under these categories. Then, we will see if any of them are actually worth owning!