United States

IRS adds vehicles to qualified plug-in vehicle list

TAX ALERT  | 

The IRS recently added vehicles to its list 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 2021 Hyundai Ioniq Electric Battery vehicle and the 2021 Hyundai Ioniq Plug-In Hybrid Electric vehicle. (For a full list of eligible vehicles, refer to Qualified Plug-In Electric Drive Motor Vehicles (IRC 30D).)

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 total amount of the credit allowed for a vehicle is $7,500. Moreover, 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 2021 Hyundai Ioniq vehicles are eligible for a credit of $7,500 for the electric battery version and $4,543 for the plug- in version.

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

RSM CONTRIBUTORS


Subscribe to Tax Alerts



How can we help you with business incentives?