Tax Tips – The Electric Motor Vehicle Credit
Your Tax Savings = up to $7,500
Were you seriously considering the purchase of a Chevy Volt and then saw the $40,000 sticker price and had second thoughts? Well the IRS is willing to cut a sizable break of up to $7,500 if you purchase the Nissan Leaf or Chevy Volt. Both the Chevy Volt and Nissan Leaf, two plug-in electric cars, are categorized by the IRS as Plug-in Electric Drive Motor Vehicles and will get you this tax break.
In addition, if you want to buy a charging dock at home for your plug-in car, both charging dock and installation are eligible for a 50% federal tax credit up to $2,000.
While the new qualified plug-in electric drive motor vehicle credit phases out after 200,000 qualifying vehicles have been sold for use in the United States, there is no need to rush out and get one unless you are looking to be the first on your block to own one. There have only been several thousand sold since production began in 2011.
For more information of the $7,500 tax credit for purchasing a Chevy Volt go to: http://www.mychevroletvolt.com/chevy-volt-federal-tax-credit-form-8936
For more information of the $7,500 tax credit for purchasing a Nissan Leaf go to: http://nissanleafelectric.com/2010/04/how-do-the-nissan-leaf-tax-credits-work/.
Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on the North Shore for 23 years. Please feel free to contact him anytime and let Erock Tax take care of you!
Friday, February 24, 2012