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Federal Tax Credits for Plug-in Hybrids

Federal Tax Credit Up To $7,500!

Plug-in hybrid-electric vehicles (PHEVs) purchased in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The credit amount will vary based on the capacity of the battery used to fuel the vehicle.

Small neighborhood electric vehicles do not qualify for this credit, but they may qualify for another credit.

Vehicle Make & Model Full Credit Phase Out No Credit
50% 25%
BMW Jan. 1, 2010, to Present TBD TBD TBD
2014 i3 Sedan w/ Range Extender
2014 BMW i3 Sedan w/ Range Extender $7,500
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2014 i8
2014 BMW i8 $3,793
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Fisker Jan. 1, 2010, to Present TBD TBD TBD
2012 Fisker Karma Sedan
Fisker Karma $7,500
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Ford Motor Co. Jan. 1, 2010, to Present TBD TBD TBD
2013–14 Ford C-Max Energi
Ford C-Max Energi $4,007
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2013–15 Ford Fusion Energi
Ford Fusion Plug-in Hybrid $4,007
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General Motors Jan. 1, 2010, to Present TBD TBD TBD
2014 Cadillac ELR
Cadillac ELR $7,500
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2011–15 Chevrolet Volt
Chevrolet Volt $7,500
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Honda Jan. 1, 2010, to Present TBD TBD TBD
2014 Honda Accord Plug-in Hybrid
Honda Accord Plug-in Hybrid $3,626
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Porsche Jan. 1, 2010, to Present TBD TBD TBD
2015 Porsche Cayenne S E-Hybrid
Porsche Cayenne S E-Hybrid $5,335.60
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2014–15 Porsche Panamera S E-Hybrid
Porsche Panamera S E-Hybrid $4,751.80
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2015 Porsche 918 Spyder
Porsche 918 Spyder $3,667
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Toyota Jan. 1, 2010, to Present TBD TBD TBD
2012–15 Toyota Prius Plug-in Hybrid
Toyota Prius Plug-in Hybrid $2,500
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VIA Motors Jan. 1, 2010, to Present TBD TBD TBD
2014 2500 Extended Range Electric Passenger Van
No photo $7,500
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2014 1500 Extended Range Electric Truck 4WD (All body styles)
No photo $7,500
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2014 2500 Extended Range Electric Cargo Van
No photo $7,500
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2014 1500 Extended Range Electric Truck 2WD (All body styles)
No photo $7,500
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Qualified Plug-In Electric Drive Motor Vehicles (IRC 30D)

To be certified for the credit by the manufacturer, the vehicle must meet the following requirements:

  • The vehicle must be made by a manufacturer (i.e., it doesn't include conventional vehicles converted to electric drive).
  • It must be treated as a motor vehicle for purposes of title II of the Clean Air Act.
  • It must have a gross vehicle weight rating (GVWR) of not more than 14,000 lbs.
  • It must be propelled to a significant extent by an electric motor which draws electricity from a battery which
    • has a capacity of not less than 4 kilowatt hours and
    • is capable of being recharged from an external source of electricity.

The following requirements must also be met for a certified vehicle to qualify:

  • The original use of the vehicle commences with the taxpayer—it must be a new vehicle.
  • The vehicle is acquired for use or lease by the taxpayer, and not for resale. (The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.)
  • The vehicle is used mostly in the United States.
  • The vehicle must be placed in service by the taxpayer during or after the 2010 calendar year.

The credit begins to phase out for vehicles at the beginning of the second calendar quarter after the manufacturer produces 200,000 eligible plug-in electric vehicles (i.e., plug-in hybrids and EVs) as counted from January 1, 2010. IRS will announce when a manufacturer exceeds this production figure and will announce the subsequent phase out schedule(Plug-In Electric Drive Motor Vehicle Credit Quarterly Sales).

Diagram illustrating phaseout

Fill out Form 8936Adobe Acrobat Icon, Qualified Plug-in Electric Drive Motor Vehicle Credit.

For vehicles acquired for personal use, report the credit from Form 8936Adobe Acrobat Icon on the appropriate line of your Form 1040, U.S. Individual Income Tax ReturnAdobe Acrobat Icon.

For vehicles purchased in 2010 or later, this credit can be used toward the alternative minimum tax (AMT).

If the qualifying vehicle is purchased for business use, the credit for the business use of an electric vehicle is reported on Form 3800Adobe Acrobat Icon, General Business Credit.

DISCLAIMER

The information on this page should not be viewed as an official or legally binding document. Other requirements or exceptions may apply. For more detailed information, please consult an IRS tax representative and/or official IRS publications.

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