Qualified Plug-in Electric Drive Motor Vehicle Credit

You can report your plug-in electric motor vehicle to receive a credit from the IRS. Previously, this credit was only applied to passenger vehicles and light trucks and vehicles purchased after December 31, 2009. The good news is that this credit for qualified two-wheeled plug-in electric vehicles is now able to cover vehicles acquired in 2018-2022.

However, the credit begins to phase out for a manufacturer when that manufacturer sells 200,000 qualified vehicles in the United States.

For new electric vehicles purchased in 2022 or before, the maximum credit is $7,500. It is nonrefundable, which means you cannot get back more on the credit than you owe in taxes. You cannot apply any excess credit to future tax years.

Qualified Plug-in Electric Drive Motor Vehicle

• A new vehicle with at least four wheels
• Is propelled to a significant extent by an electric motor that draws electricity from a battery
• Has a capacity of not less than 4 kilowatt hours
• Is capable of being recharged from an external source of electricity
• Has a gross vehicle weight of less than 14,000 pounds.

Qualified Two-Wheeled Plug-in Electric Vehicle

• A new vehicle with two wheels that:
• Is capable of achieving a speed of 45 miles per hour or greater,
• Is propelled to a significant extent by an electric motor
• draws electricity from a battery that has a capacity of not less than 2.5 kilowatt hours
• Capable of being recharged from an external source of electricity
• Has a gross vehicle weight of less than 14,000 pounds.

For the full list of qualified vehicles purchased before 2023, click here.

For the full list of qualified vehicles purchased in 2023 and after, click here.

This entry was posted on Friday, November 20th, 2020 at 2:35 pm and is filed under Credits. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.