Learn About the Tax Breaks for Plug-In Electric Vehicles
By Taxation Solutions, Inc. on 2016-06-03
Are you an environmentally conscious driver? If you've recently purchased a plug-in electric vehicle, your efforts to save the planet may also result in saved money when tax season rolls around.
The IRS offers two tax credits related to electric vehicles:
- Four-wheeled electric vehicle credit: For qualified plug-in electric cars placed in service in 2010 and later, you may claim a credit of $2,500. If the battery capacity is more than 5 kilowatt hours, you can add $417—as well as an additional $417 for every kilowatt hour of traction battery capacity over 5.
- Low-speed, motorcycle, and three-wheeled vehicle credit: You may claim 10% of the cost of the vehicle, with a maximum credit of $2,500 per vehicle.
If your vehicle qualifies for both of these credits, you'll be required to choose one. Regardless, you'll see a decrease in your total taxes owed that can help to offset your purchase.
Want to learn more about these and other tax credits the government offers to taxpayers who take steps to benefit the environment? Call Taxation Solutions, Inc. today. We're Charlotte's best choice for experienced and knowledgeable tax help, and we'll step in to solve your tax problems with ease. We want you to make the most of your tax return while also staying in complete IRS compliance. Get in touch now to book your initial consultation!