J.K. Lasser's Small Business Taxes 2013: Your Complete Guide to a Better Bottom Line

Credit for Plug-In Electric Vehicles

There is a credit for plug-in electric vehicles purchased and placed in service after February 17, 2009 and before 2015. The 2012 credit is up to $7,500, regardless of the weight of the vehicle. In 2011, there was a credit for low-speed vehicles, motorcycles, and 3-wheeled vehicles, the credit was limited to 10% of cost up to $2,500 and may be extended for 2012. There was also a 10% credit (up to a maximum of $4,000) for the cost of converting a conventional-fuel vehicle to electric power, it too may be extended for 2012.

TABLE 9.10 Dollar Limits for Light Trucks and Vans

Tax Year	Dollar Limit
First year (2012)	$3,360*
Second year (2013)	5,300
Third year (2014)	3,150
Each succeeding year	1,875
*If bonus depreciation applies, add $8,000.

The full $7,500 credit applies only to 200,000 cars per manufacturer; there is a partial credit for up to a year after this limit is reached.

If the vehicle is purchased for business, it is part of the general business credit (see Chapter 23).

The credit can be claimed for both regular tax and alternative minimum tax purposes (see Chapter 28).