Tax Day 2013: Does your plugin qualify for a tax credit?(Read article summary)
Tax Day 2013 is a month away, and if you drive a plugin, your vehicle could qualify you for a wide range of federal, state, and local tax credits. Read on to see if you qualify, and get your paperwork together in plenty of time for Tax Day 2013.
One month from today is Tax Day, April 15.
Let us repeat that: Your Federal income taxes (and your state and local taxes too, if you live in places with their own income taxes) must be filed 31 days from today.
So consider this our friendly reminder to start getting your paperwork in order if you plan to take advantage of any of the Federal tax incentives for buying plug-in electric cars (or other alternative-fuel vehicles), or installing charging stations, during 2012.
About 53,000 plug-in electric cars were sold last year, each qualifying for at least some credit.
The credit ranges from $2,500 to $7,500, depending on the size of the car's battery pack. Below is a list of many cars that qualified for 2012 credits:
- Toyota Prius Plug-In Hybrid: $2,500
- Ford C-Max Energi: $3,750
- Chevrolet Volt: $7,500
- Fisker Karma: $7,500
- Ford Focus Electric: $7,500
- Mitsubishi i-MiEV: $7,500
- Nissan Leaf: $7,500
- Tesla Model S or Roadster: $7,500
- Toyota RAV4 EV: $7,500
Note these credits can only be claimed by the car's first owner. If you leased your electric car, in general you cannot claim the credit, because the leasing company claims it and uses the money to lower the lease payment.
There are also credits for purchase of larger, commercial plug-in trucks that range higher than $7,500.
2012 Toyota Prius Plug-In Hybrid - production model
Among them are
- A Federal tax credit of 10 percent of the purchase price, up to a maximum of $2,500, for the purchase of a two- or three-wheeled electric vehicle (Form 8834)
- Restoration of a tax credit up to $1,000 for installing an electric-car changing station in a private home (Form 8911)
- Restoration of the 30-percent tax credit, capped at $30,000, for purchase and installation of an electric-car charging station by businesses
(The Federal tax form numbers given include not only the forms themselves to fill out, but also instructions on how to complete them.)
In addition to Federal tax benefits, there are also numerous state, regional, local, and corporate incentives as well--far too many to cover here.
We recommend that you check with the list of incentives maintained by advocacy group Plug-In America, which is available online.
Remember, always check with a tax advisor if you're not 100 percent clear that you qualify for one or more of these credits.
Happy tax-day countdown, everyone.