Federal Tax Break is Ending!

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Federal Tax Break is Ending!

Lawrence Rhodes
The federal tax incentive to build your own electric vehicle is expiring
December 31, 2011. This tax incentive was part of theAmerican Recovery and
Reinvestment Act of 2009. You can find the text of the various electric vehicle
incentives here:  http://www.irs.gov/newsroom/article/0,,id=206875,00.html

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Re: Federal Tax Break is Ending!

Danpatgal
Does anyone know if enhancing an existing EV count under this law?  What is the definition of a "kit"?  It's kind of nebulous.

The Q&A on the irs.gov website says:

Q. Can a taxpayer claim a credit for installing an electric drive conversion kit?

A.  Yes. ARRA provides 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.

I'm wondering if adding a new battery pack would qualify?  If so, it might make sense to get a 10% discount and get it done (at least purchased) this year ...

Dan
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Re: Federal Tax Break is Ending!

corbin dunn

On Nov 14, 2011, at 8:35 AM, Danpatgal wrote:

> Does anyone know if enhancing an existing EV count under this law?  What is
> the definition of a "kit"?  It's kind of nebulous.
>
> The Q&A on the irs.gov website says:
>
> Q. Can a taxpayer claim a credit for installing an electric drive conversion
> kit?
>
> A.  Yes. ARRA provides 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.
>
> I'm wondering if adding a new battery pack would qualify?  If so, it might
> make sense to get a 10% discount and get it done (at least purchased) this
> year ...

Technically, you'd have to "get it done and running" because it says:

> a qualified plug-in electric drive motor vehicle and placed in service

--corbin


>
> Dan
>
>
> -----
> Dan Gallagher
> http://www.evalbum.com/3854
>
> --
> View this message in context: http://electric-vehicle-discussion-list.413529.n4.nabble.com/Federal-Tax-Break-is-Ending-tp4033297p4040025.html
> Sent from the Electric Vehicle Discussion List mailing list archive at Nabble.com.
>
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Re: Federal Tax Break is Ending!

Cruisin
In reply to this post by Lawrence Rhodes
One of the BIG problems with the tax credit is that you must have earned income and owe tax. Since I am retired, Obama is giving me SQUAT for spending $25k on converting a car.
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Re: Federal Tax Break is Ending!

Ben Jarrett



Also, I believe it's for a new ev.  I believe this means a "newly converted" ev.
So if you converted an ev a few years ago or buy an ev and then just
upgrade the battery pack, you don't qualify.  That's my guess.  

Also, I've heard of folks getting denied because turbo tax picked the wrong form last
year.  I plan to try and claim the credit - we shall see!

-ben


________________________________
From: Cruisin <[hidden email]>
To: [hidden email]
Sent: Monday, November 14, 2011 8:07 PM
Subject: Re: [EVDL] Federal Tax Break is Ending!

One of the BIG problems with the tax credit is that you must have earned
income and owe tax. Since I am retired, Obama is giving me SQUAT for
spending $25k on converting a car.

--
View this message in context: http://electric-vehicle-discussion-list.413529.n4.nabble.com/Federal-Tax-Break-is-Ending-tp4033297p4041608.html
Sent from the Electric Vehicle Discussion List mailing list archive at Nabble.com.

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Re: Federal Tax Break is Ending!

David Dymaxion
My tax man couldn't get the credit to work electronically, so we had to send it in on paper.



________________________________
From: Ben Jarrett <[hidden email]>
To: Electric Vehicle Discussion List <[hidden email]>
Sent: Monday, November 14, 2011 9:37 PM
Subject: Re: [EVDL] Federal Tax Break is Ending!




Also, I believe it's for a new ev.  I believe this means a "newly converted" ev.
So if you converted an ev a few years ago or buy an ev and then just
upgrade the battery pack, you don't qualify.  That's my guess.  

Also, I've heard of folks getting denied because turbo tax picked the wrong form last
year.  I plan to try and claim the credit - we shall see!

-ben


________________________________
From: Cruisin <[hidden email]>
To: [hidden email]
Sent: Monday, November 14, 2011 8:07 PM
Subject: Re: [EVDL] Federal Tax Break is Ending!

One of the BIG problems with the tax credit is that you must have earned
income and owe tax. Since I am retired, Obama is giving me SQUAT for
spending $25k on converting a car.

--
View this message in context: http://electric-vehicle-discussion-list.413529.n4.nabble.com/Federal-Tax-Break-is-Ending-tp4033297p4041608.html
Sent from the Electric Vehicle Discussion List mailing list archive at Nabble.com.

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Re: Federal Tax Break is Ending!

rwminicup@yahoo.com
In reply to this post by Cruisin
In the interest of accuracy  (as opposed to political statments that are verbotten) - the Congress is not giving you anything. El Presidente has nuthin to do with the way the law was written.



>________________________________
>From: Cruisin <[hidden email]>
>To: [hidden email]
>Sent: Monday, November 14, 2011 6:07 PM
>Subject: Re: [EVDL] Federal Tax Break is Ending!
>
>One of the BIG problems with the tax credit is that you must have earned
>income and owe tax. Since I am retired, Obama is giving me SQUAT for
>spending $25k on converting a car.
>
>--
>View this message in context: http://electric-vehicle-discussion-list.413529.n4.nabble.com/Federal-Tax-Break-is-Ending-tp4033297p4041608.html
>Sent from the Electric Vehicle Discussion List mailing list archive at Nabble.com.
>
>_______________________________________________
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Re: Federal Tax Break is Ending!

EVDL Administrator
On 14 Nov 2011 at 22:44, Roger W wrote:

> In the interest of accuracy  (as opposed to political statments that are
> verbotten) ...

Ouch.

The fastest way to start a politics flame war is to make "corrections."  :-\

The way to remain nonpartisan is to >NOT< respond to something that you
might perceive as politically inaccurate - but which makes no difference to
how people file their tax returns.

Now, if this issue DID matter for the practical purpose of how to claim the
tax deduction, that would be something else.  But it doesn't.  So ... just
don't, please.

NO POLITICS, folks.  (If you'd lived through the EVDL flame wars that this
rule is designed to prevent, you'd understand why.  We'll leave it at that.)

Thanks.

David Roden - Akron, Ohio, USA
EVDL Administrator

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Re: Federal Tax Break is Ending!

Danpatgal
Thanks for the comments everyone.  The law is still a bit nebulous to me ... strictly speaking it applies to taking a gasoline car and buying a "kit" to make it electric.  I'm thinking that if you already had a motor, or a coaster, and claimed the costs for the 70% of the other stuff you needed, then that's fine.  I would think getting the batteries in place, even replacements, especially if the cost is a significant part of an EV, should apply.  

Has anyone attempted to do that in previous years?

I found, for example, Prius owners claiming the credit for a Plug-In kit purchased and put into service.  Seems like a new battery "kit" (incudes potentially a BMS, charger, and other wiring) for a pure EV should qualify.

Thoughts?

Dan