[cinepuxon]

Electric Vehicle Tax Credit.

Just in case you are confused about the available tax credits for electric vehicles be aware that there are 2 (TWO) but you cannot claim both.

The credit(s) are nonrefundable, i.e., they offset your 2009 tax liability. If your liability is less than the available credit then you do not get the excess credit refunded to you, ie., no cash back.

The two credits are:

1. The ESSA credit (also referred to as IRC 30D) for 4 wheel battery driven electric drive vehicles which, for 2009, varies from $2500 to $15000 depending on weight and battery capacity. [It appears that this credit will also be available for 2010 also.]

2. The ARRA credit (IRC 30) for 2, 3 or 4 wheel electric vehicles purchased between 02.17.2009 and 12.31.2011. The credit is 10% of cost up to a maximum of $2500.

Each credit has its own IRS form, ESSA uses 8936 and ARRA uses 8834.

Obviously if you have purchased a 4 wheel low speed vehicle you will want to take the ESSA credit so be sure to use form 8936 to calculate your credit.

A list of quailified vehichles can be found at: http://www.irs.gov/businesses/articl...214841,00.html

Also note that IRS Bulletin 2009-89 provides that a vehicle is considered “acquired” when title to that vehicle passes under state law.

Possession of title appears to be sufficient for proof of ownership and date of purchase. Vehicle registration is not mentioned.

[bgw70]

The tax credit that ended on 12/31/09 for the Plug-in electric drive car is claimed on form 8936. If you purchased and had the car delivered to your home before 12/31/09 then you should have no problems claiming the credit on your 2009 taxes.

If you purchased (aquired) before 12/31/2009, but didn't take delivery (placed in service) until 2010, then this tax credit becomes complicated.

I have had many discussions with people on another website and the opinions differ greatly...the IRS is not very clear either, so the discussion goes on and question of the month is: Can I claim the credit if I purchased the car in 2009 but didn't receive it until 2010?

Any tax accountants or tax lawyers out there with an opinion on this?