Electric vehicles (EVs) purchased in 2009 may be eligible for a federal income tax credit of up to $7,500. The amount will vary based on the capacity of the battery used to power the vehicle.

This credit will be replaced with a similar credit for EVs purchased after 2009. The maximum amount of this credit is the same, but the requirements and credit phase-out criteria are slightly different. For more on the credit for EVs purchased after 2009, click here.

Note: No highway motor vehicles have been certified for this credit.

To be approved for the credit by the IRS, the vehicle must

• Draw propulsion using a traction battery with at least 4 kilowatt hours of capacity and
• Use an offboard source of energy to recharge the battery
• Meet EPA emissions standards (if it is a highway vehicle)
  • Bin 5 Tier II standards for vehicles with a gross vehicle weight rating (GVWR) of 6,000 lbs. or less
  • Bin 8 Tier II standards for vehicles with a GVWR greater than 6,000 lbs. and not more than 8,500 lb

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

• The vehicle must be placed in service by the taxpayer during the 2009 calendar year.
• The vehicle must be used mostly in the United States.
• Original use of the vehicle must commence with the taxpayer.
• The vehicle must be 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.)

This EV credit will be replaced by a newer EV credit beginning January 1, 2010.

Claiming the Credit view...

Fill out Form 8834, Qualified Electric and Plug-in Electric Vehicle Credit.

For vehicles acquired for personal use, report the credit from Form 8834 on the appropriate line of your Form 1040, U.S. Individual Income Tax Return.

Note that this credit cannot be applied 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 3800, General Business Credit.

• IRS Home Page
• Plug-In Electric Vehicle Credit (IRC 30 and IRC 30D), IRS, Oct. 28, 2009.
• Notice 2009-54: Qualified Plug-in Electric Vehicle Credit, IRS, June 29, 2009.
• Notice 2009-58: Qualified Plug-In Electric Vehicle Credit Under Section 30, IRS, July 27, 2009.
• Energy Provisions of the American Recovery and Reinvestment Act of 2009, IRS, June 3, 2009.

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.