Must be NEW..See the IRS notice below where it talks about "the original use must commence with the taxpayer".....also there is a good link to an article on the subject.
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Plug-In Electric Vehicle Credit (IRC 30 and IRC 30D)
Qualified Plug-in Electric Drive Motor Vehicles (IRC 30D) and
Plug-in Electric Vehicles (IRC 30)
Updated: 11-20-09
Qualified Plug-in Electric Drive Motor Vehicles (IRC 30D)
Internal Revenue Code Section 30D provides a credit for Qualified Plug-in Electric Drive Motor Vehicles which include low-speed vehicles, and passenger vehicles and light trucks. The amount of the credit is equal to the sum of $ 2,500 plus $ 417 for each kilowatt-hour of traction battery capacity in excess of four kilowatt-hours. The maximum credit can range from $ 7,500 to $ 15,000, depending on the gross vehicle weight rating of the vehicle.
To qualify, the vehicle must be placed in service after December 31, 2008, and must be acquired by December 31, 2009. The vehicle must be acquired for use or lease and not for resale. Additionally,
the original use of the vehicle must commence with the taxpayer and the vehicle must be used predominantly in the United States.
Section 30D originally was enacted in the Energy Improvement and Extension Act of 2008. The American Recovery and Reinvestment Act of 2009 amended section 30D effective for vehicles acquired after December 31, 2009. Information provided below on qualified vehicles applies only to vehicles acquired by December 31, 2009.
Notice 2009-54 provides procedures that a vehicle manufacturer may use if it chooses to certify that a vehicle meets certain requirements that must be satisfied to claim the new Qualified Plug-in Electric Drive Motor Vehicle Credit and the amount of the credit allowable with respect to that vehicle. Notice 2009-54 applies to vehicles acquired by December 31, 2009.
Plug-in Electric Vehicles (IRC 30)
Internal Revenue Code Section 30 provides a credit for qualified plug-in electric vehicles. The credit is equal to 10 percent of the cost of a qualified plug-in electric vehicle and is limited to $2,500. Qualified vehicles may include low-speed vehicles or vehicles that have two or three wheels.
Vehicles must be acquired after February 17, 2009, and before January 1, 2012. The vehicle must be acquired for use or lease and not for resale. Additionally, the original use of the vehicle must commence with the taxpayer and the vehicle must be used predominantly in the United States.
Notice 2009-58 provides procedures for a vehicle manufacturer to certify to the Internal Revenue Service that a vehicle of a particular make, model, and model year meets the requirements that must be satisfied to claim the new plug-in electric vehicle credit under § 30
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LINK:
http://www.prlog.org/10364735-irs-ls...rs-beware.html