Plug-in Prius tax credit

So a Plugin Prius with 2.2 kWh capacity would also qualify for $2,500?

 

Sorry, "not less than 5 kwh of capacity" means does not apply if you do have less.

From the IRC quoted on first page of thread:

"For vehicles acquired after December 31, 2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500."

 

With Prius being the top-selling vehicle in Japan and the US getting less than a third of the 2012 production of PHV, the point of the tax-credit here helping to reach high-volume quickly stands a very good chance.

The less lithium usage the better for getting vehicle quantity up.
.

 

^^
Less than 4 kwh: $0
4 - < 5 kwh: $2500

5 - < 6 kwh: $2500 + 417
6 - <7 kwh: $2500 + 417 + 417
... ... ...
Up to a max of $7500

In my pseudo algebra, it would be:
"For battery capacities of at least 4 kwh, the tax credit will be the lesser of $7500 or ($2500 + (integer_capacity* - 4)*417)

* capacity rounded down to its whole number

 

Right, the additional $417 increments do not apply.

Aren't you a lawyer ? LOL

 

Edit:

I stand corrected. There was a change in 2009 involving 4 kwh and 5 kwh, but I jumped to conclusions in haste rather than being thorough.

It will qualify for $2500 only.

 

Sagebrush already answered this, but here's the statutory language (I underlined and bolded the 4 kWh minimum):

(d) New qualified plug-in electric drive motor vehicle.
For purposes of this section—
(1) In general.
The term “new qualified plug-in electric drive motor vehicle” means a motor vehicle—
(A) the original use of which commences with the taxpayer,
(which is acquired for use or lease by the taxpayer and not for resale,
(C) which is made by a manufacturer,
(D) which is treated as a motor vehicle for purposes of title II of the Clean Air Act,
(E) which has a gross vehicle weight rating of less than 14,000 pounds, and
(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which—
(i) has a capacity of not less than 4 kilowatt hours, and
(ii) is capable of being recharged from an external source of electricity.
(2) Motor vehicle.
The term “motor vehicle” means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.
(3) Manufacturer.
The term “manufacturer” has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).
(4) Battery capacity.
The term “capacity” means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge.

 

I think its due to the IRS poorly written language on the matter.

Credit is:
$2500 + (if >5kwh) $417 + ((#kwh >5)*$417)

 

For every $7,500 incentive for a compact Volt, the same tax payer dollar can cover three midsize Plugin Prius.

 

^^ BINGO, Dennis.

And since the PiP "saves" about 80% of the petrol averted in a Volt, the Volt is a miserable subsidy target.

 

For a lawyer, you are ok gwmort

Your error is only interesting in that you side-stepped common sense in your desire to find that the PiP was going to have a higher end price than anticipated.

 

It was more shock, I really did believe the lower limit was 5 kwh so was really surprised the capacity reduced so much from the pre-production versions.

Oh well, there still hope the EPA lists the all electric miles on the sticker as zero.

Also I noted in the UK press release that the emissions were only one gram or so away from not qualifying for some 5,000 euro credit in the EU, so they may have been really pushed to save every ounce of weight they could. 0.6 kwh of capacity may not sound like much, but its 14% of the production capacity and would have added more kgs into the mix.

 

Does the Ampera qualify for the Euro credit you are wondering about ? If it does then the 16 kwh battery capacity made it eligible, not the Ampera CS MPG or the (US) ULEV emissions profile. Along the same lines, the way for toyota to reduce emissions would be to add battery capacity.

Moreover, the lion's share of PiP sales are going to be in the US, not the EU. EU credit or no credit.

 

I do not know, I just found it again in a french article linked to in the other thread:
"This corresponds to CO2 emissions of 49 g / km. The latter figure has the merit of increasing the Prius plug-in below the fateful 50 g / km, which gives it an environmental bonus of € 5,000 (the current state of regulation)."

 

No pure ICE engine is below 50 grams/km, so my reasoning above is right. The way to money is battery capacity.

 

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