View Full Version : New tax credits being promoted by Tomberlin

08-25-2009, 06:41 PM
Did you see their add in the paper today. It list credits ranging from a low of $4,234 to a high of $5,477 on carts selling for around $10,000.

It is very hard to come by info on how to qualify for this credit. The only thing I can find at the IRS is this (http://www.irs.gov/newsroom/article/0,,id=207051,00.html) reference. In particular, it is the EESA credit that was part of the last stimulus package, not the previous 10% up to $2,500 dollar credit.

There is no mention on how to qualify, or if the credit is refundable like the $8,000 first time homebuyer credit is.

If this can be believed, that is at least a 40% credit on the price of the LSV cart.

I went over to the dealer to check it out, and they were very busy. Looks like several buyers. Of course they won't or can't answer any questions about the tax credit (other than talk to your tax advisor). Since it runs through 2010, there is no rush. No indication that it has a limit on it like 'cash for clunkers'.

Anybody have any better info?

08-25-2009, 07:16 PM
I was wondering about that too - they posted a letter from the government approving it in their ad.

08-25-2009, 07:32 PM
On topic, but not really. Seems like an example of taking a decent idea and maybe going off the mark. Won't debate the merits of gas vs electric. Too personal a call. Won't debate any potential catastrophe for the ozone, glaciers, or polar bears that golf carts might preordain. :blahblahblah::blahblahblah::blahblahblah: Nobody actually knows nothing. However, let's look at 2 carts. First is a gasoline powered vehicle that seems to get about 3500 miles a gallon -:a040::2excited:- realistically probably about 50. Keep it tuned and it lasts forever. Second is an cart with a bunch of batteries. It requires recharging to your dedicated home circuit every time it's used. Every couple years, at least some of the batteries must be replaced and properly disposed, at a substantial cost. :rant-rave:

So we get a tax incentive to buy the second???? :shrug::shrug:


08-26-2009, 07:07 PM
Like it or not, electric vehicles are a governmental favorite, and if better deep cycle batteries are ever developed they could give gas vehicles a run for their money in places like TV.

I'm in the process of buying a Tomberlin LSV and the tax credit was a major factor. Other than having to pay enough tax to cover the credit I don't believe there are any other qualifying limitations. A draft IRS Form 8936 is now on the IRS website and although there aren't any draft instructions posted the form seems straightforward enough. Tomberlin has IRS approval for a number of different models that you can't get yet. They were no doubt planning ahead.

The EESA (Emergency Economic Stimulas Act) did indeed create the credit and after so many LSV's (IRS approved, that is) are sold the credit will be reduced and eventually likely disappear. I think 250,000 is the total number of vehicles that should qualify and each approved manufacturer is to make quarterly reports to the IRS as to the number of LSV's they have sold.

The tax credit makes LSV's less expensive than new golf carts and very competitive with rebuilt golf carts (depending upon the level of rebuilding).

The long-term cost of licensing and increased insurance cost are the only drawbacks I've identified. Safety could be an issue but in The Villages you could keep your licensed cart (LSV) on the golf trails and still get almost everywhere you wanted to go.

It is too bad that the big three (Club Car, Yamaha, EZ-Go) don't make qualifying LSV's. Par-Car does but I chose Tomberlin, even though they haven't been around long enough to have much of a track record.

Here's hoping that Craigslist helps me find a new owner for my used Club Car (which served me well for 5+ years).


08-29-2009, 11:31 AM
I purchased my Tomberline E-merge 2 in March and have been following this potential tax break as it has evolved over the past few months.

1. In April, the IRS issued a statement summarizing the two possible tax credits available to taxpayers who purchase electric vehicles. Here is a link to that notice: http://www.irs.gov/newsroom/article/0,,id=207051,00.html

The ARRA credit applies to many types of electric vehicles including two, three, and four wheel vehicles but is limited to 10% of the purchase price.

The second credit called the EESA credit is limited to certain four wheeled vehicles that qualify and is based on the kilowatt hour capacity of the vehicle. The base credit is $2,500 and can go much higher. But as noted in the statement, the IRS was in the process of developing guidelines for qualification.

It was the potentially lucrative amounts of the EESA tax credit that had all the NEV dealers (ParCar, Tomberline, GEM etc.) buzzing. But the jury was still deliberating as the saying goes.

2. Then at the end of June, the IRS issued Notice 2009-54 which “sets forth a process that allows manufacturers to certify to the Service that a particular vehicle meets the requirements of section 30 of the Code. Taxpayers purchasing such vehicles can rely on the domestic manufacturer’s (or, in the case of a foreign manufacturer, its domestic distributor’s) certification that both a particular make, model, and model year of vehicle qualifies as a plug-in electric vehicle under section 30, and the amount of the credit is allowable with respect to the vehicle”. Here is a link to that document: http://www.irs.gov/irb/2009-26_IRB/ar07.html

Apparently Tomberline wasted no time in submitting the necessary documentation to the IRS on all their vehicles.

3. On August 14th the IRS issued the following letter to Tomberline asserting that the listed vehicles are qualified for the tax credit and in the amounts stipulated. Here is the link to that letter: http://tomberlin.net/sites/tomberlin.net/files/Tomberlin-IRS-TAX-Credit-Letter.pdf

Tomberlin also has a short FAQ sheet with answers to common questions regarding this: http://tomberlin.net/sites/tomberlin.net/files/2009-electric-vehicle-tax-credits.pdf

Also, as far as I’ve read, the credit is not refundable and is not subject to the Alternative Minimum Tax.