PHEV Tax Credit question

[ForTheGlory]

I've read about the forthcoming Federal tax credit for buying a plug-in hybrid electric vehicle. It can be anywhere from $2500-$7500, depending upon the size of the battery pack. Here's my question:

If I upgrade my 2008 Prius with one of the aftermarket PHEV kits, does that qualify me for the tax credit?

[ForTheGlory]

Originally Posted by ForTheGlory

I've read about the forthcoming Federal tax credit for buying a plug-in hybrid electric vehicle. It can be anywhere from $2500-$7500, depending upon the size of the battery pack. Here's my question:

If I upgrade my 2008 Prius with one of the aftermarket PHEV kits, does that qualify me for the tax credit?

I answered my own question. Yes, the legislation does provide tax credits for PHEV conversion kits. as, below:

Plug-in Electric Drive Vehicle Credit. The bill modifies and increases a tax credit passed into law at the end of last Congress for each qualified plug-in electric drive vehicle placed in service during the taxable year. The base amount of the credit is $2,500. If the qualified vehicle draws propulsion from a battery with at least 5 kilowatt hours of capacity, the credit is increased by $417, plus another $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours up to 16 kilowatt hours. Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter in which the manufacturer records its 200,000th sale of a plug-in electric drive vehicle. The credit is reduced in following calendar quarters. The credit is allowed against the alternative minimum tax (AMT). The bill also restores and updates the electric vehicle credit for plug-in electric vehicles that would not otherwise qualify for the larger plug-in electric drive vehicle credit and provides a tax credit for plug-in electric drive conversion kits. This proposal is estimated to cost $2.002 billion over 10 years.

The Hymotion battery is 5 kWh, so that's a $3000 credit.

[gawilson]

Can I get a tax credit if I trade my 2005 Prius in for a 2010 model? Also, on the PHEV conversion for non-hybrid vehicles, what is the amount? I have a 4-runner that I might consider converting.

[SageBrush]

fuggeditabitit

[Bob 411]

Here is what the IRS says.

Conversion Kits (Section 1143): The new law also provided a tax credit for plug-in electric drive conversion kits. The credit is equal to 10 percent of the cost of converting a vehicle to a qualified plug-in electric drive motor vehicle and placed in service after Feb. 17, 2009. The maximum amount of the credit is $4,000. The credit does not apply to conversions made after Dec. 31, 2011. A taxpayer may claim this credit even if the taxpayer claimed a hybrid vehicle credit for the same vehicle in an earlier year.

Here is a link.http://www.irs.gov/newsroom/article/...206871,00.html

[Rest]

Originally Posted by gawilson

Can I get a tax credit if I trade my 2005 Prius in for a 2010 model?

No, as the 2010 Prius is not a plug in hybrid.

[scienceexpert]

I would have liked the full tax credit of a mfg. built plug-in but they wanted the new cars built that way so modifications only get max of 10% which really does not off-set the high Lithium cost.

[Dan.]

Originally Posted by scienceexpert

I would have liked the full tax credit of a mfg. built plug-in but they wanted the new cars built that way so modifications only get max of 10% which really does not off-set the high Lithium cost.

Federal credit is 10%, Oregon State credit is 25%, and I thought I heard that some cities were offering a municipal tax credit as well.

Make sure to check all three.

[tomcornell]

Originally Posted by Dan.

Federal credit is 10%, Oregon State credit is 25%, and I thought I heard that some cities were offering a municipal tax credit as well.

Make sure to check all three.

Just be sure to calculate the Federal credit before you base a purchasing decision on it.

I found out the hard way (after performing various computations) that with the old credit back in 2007 the Government's promises sounded as hollow as those spoken by a used car salesman. Talk about bait and switch! I felt ripped off by the IRS, even more so than normal.