[rabonkmontage@msn.com]

Does the golf cart have to be new to recieve a tax credit, or can it be a used one purchased this year.
Thanks rich

[784caroline]

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

[rabonkmontage@msn.com]

Thanks for the imformation.

[Taj44]

There was an interesting article in the January 2010 issue of Golf Digest about the tax credit for golf carts. Basically it said the IRS says that any vehicle that's manufactured or used as a Golf Cart, no matter how many seat belts, side mirrors and other features it has, is ineligible for the tax credit.

[784caroline]

Reading Golf Digest or any other magazine or small talk you may have with someone does not quite equate to a very recent IRS TAX BULLETIN that clearly states guidance for tax credits Plug In Electric Vehicles .

Some things you may be able to claim when guidance is not clear or its not on the iRS radar list of things to look for, but with all the attention on an issue such as this, IRS will be looking for complete documentation to support the credit if asked. ..plus this deduction would flag your return and open up all other lines on your tax return for further review.

[Taj44]

Exactly. Obviously an article in Golf Digest is not the defining authority on IRS regulations. But when you read the magazine article, it is also obvious that The Villages and the golf cart scene is on the IRS radar. Just a heads up to anyone who might be claiming this tax credit.

[RVRoadie]

Keep in mind that the tax credit is NOT refundable, like the housing tax credit. You can only use the tax credit up to the amount of your tax bill. For example, if you tax liability is $2,500 for 2009, and your golf cart credit is $5,000, you can only use up to $2,500 of your tax credit. I suspect that the unused credit will carry forward, but I can't find any info on this.

[RVRoadie]

Originally Posted by Taj44

Exactly. Obviously an article in Golf Digest is not the defining authority on IRS regulations. But when you read the magazine article, it is also obvious that The Villages and the golf cart scene is on the IRS radar. Just a heads up to anyone who might be claiming this tax credit.

The cart manufactures all have IRS letters stating the amount of the credit. I think it would be difficult, but not impossible, for the IRS to rescind those letters.

I suspect that if this credit is extended beyond this year, they may tighten up the rules to eliminate golf carts, or vehicles that can be used for golf carts.

Also, for those that do not maintain their vehicles LSV status after the first year, there could be potential problems with the IRS if they ever find a way to monitor vehicle usage.

[EdV]

Here is a link to the updated list of the vehicles that have been certified to date and the amount of tax credit that can be claimed:

http://www.irs.gov/businesses/articl...214841,00.html