Drive Into Tax Credits

Posted on 03-30-2016

Sure, we know that driving plug-in electric vehicles saves on fuel costs, saves the environment and helps reduce foreign oil dependency.  The tax benefit for purchasing a plug-in car is a big advantage for the consumer of a PEV (plug-in electric vehicle) since the tax credit can range from $2500 to $7500.  The qualifying vehicle must be for personal use and not for resale and must be driven mostly in the United States.

The tax credits don't stop and the PEV itself.  In addition, fueling equipment for natural gas, hydrogen, propane, electricity, B85 and B20 can also qualify for federal tax credits.  If you install a charging infrastructure in your home, you could qualify for up to $1000 in tax credits.  And businesses can get in on the tax credits, too, by providing charging (PEV chargers) or fueling infrastructures can get up to 30% of the cost back, not to exceed $30,000.  This credit was also retroactively extended by congress through December 2016.  Any fuel infrastructures or chargers you installed in 2015 can be put toward your 2016 taxes.

It's a good idea to contact a tax professional to understand what tax credits your PEV would qualify for before making a purchase.  You can also visit the IRS page for more information:

https://www.irs.gov/Businesses/Plug-In-Electric-Vehicle-Credit-IRC-30-and-IRC-30D