United States

IRS adds to list of vehicles qualified to claim plug-in vehicle credit

TAX ALERT  | 

The IRS recently added vehicles to its index of eligible vehicles for the section 30D credit for qualified plug-in electric drive motor vehicles. The new vehicles eligible for the credit are the 2022 BMW 745e xDrive, the 2022 MINI Cooper S E Countryman ALL4, the 2022 MINI Cooper S E Hardtop and the 2021 Porsche Taycan EV.

Section 30D allows for a credit for qualified plug-in electric drive motor vehicles, including passenger vehicles and light trucks, for the taxable year in which it is placed in service. For vehicles acquired after Dec. 31, 2009, the credit is equal to the base amount of $2,500 plus, for vehicles that draw propulsion energy from a battery with at least five kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of five kilowatt hours. The maximum amount of the credit allowed for a vehicle is $7,500. The credit begins to phase out for vehicles when 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States.

The newly added vehicles are eligible for a credit of $5,836 for the BMW, $5,002 for the MINI Cooper S E Countryman and $7,500 for the MINI Cooper S E Hardtop and the Porsche.

Taxpayers who have questions on how these credits apply and other rules for claiming the credit should consult their tax advisers.

RSM CONTRIBUTORS


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