U.S. Federal Tax Credit for Electric Vehicles (beginning 2009)

Last updated 2020.04.10

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One jurisdiction that has definitely gotten with the program is the U.S. federal government as of 2009.

If you buy a 4-wheeler NEV in the U.S. before December 31, 2009 that has the IRS stamp of approval, you qualify for a significant chunk of change in the form of a tax credit. (There is a lesser credit for 2 and 3-wheeler low-speed electric vehicles intended for on-road use. [may have expired as of 2013])

The Internal Revenue Service Press Release dated April 24, 2009.

Too good to be true, right? Seems that way, and yet, read IRS Bulletin 2009-26 for yourself. Make sure that you qualify (U.S. resident, plan to use the NEV predominantly in the U.S., prepared to take delivery by end of the tax year, etc.). Also, make sure they are legal in your state. (Our unofficial but reasonably up-to-date list of jurisdictions where NEVs are legal. But do verify with local officials before making your purchase decision.)

Rules in the US have changed since 2009 to accommodate larger EVs. While I think the changes were meant to exclude golf cars, I think some LSVs will still qualify - the crux being the 4 kWh battery capacity rating. If in doubt, check for yourself. You can start with the IRS document here. (Scroll more than half-way down and find the section titled "New Qualified Plug-in Electric Drive Motor Vehicle Credit".)

The U.S. government has a list of plug-in vehicles which qualify for the U.S. federal tax credit up to $7,500, though it appears this credit was not renewed by the U.S. government past December 31st, 2019.

There are also now state and local incentives in some jurisdictions. Again, check your specific situation.

Another source you can check on U.S. EV incentives and tax credits as of 2019.

If the vehicle you want qualifies where you are, then all you need to do is pick the model of NEV you want, and arrange payment, financing and delivery.

Well, there is one more thing: make sure you actually apply for the tax credit. Put your purchase documents and eligiblity for the credit with your tax documents, and using one of many different tax tools, complete your return and collect your credit. Such tools should ensure you don't miss this credit.

Well, as of 2010, 14 manufacturers had vehicles that qualify for credits under the IRS credits for electric vehicles then. Here's the current IRS Qualified Electric Vehicle Credit form for your return, and the current list of qualified vehicles (up to 2019 tax year). (Sorry, it's the IRS, things staledate fast there.)

In Canada, where we invented the LSV, there are no tax credits for them. As of May 1, 2019, there is a federal tax credit of up to $5,000 for a street-legal plug-in vehicle which excludes LSVs. Additional provincial credits in Quebec and British Columbia. Ontario's EV incentive was removed by the Doug Ford government in 2019.

Now, aren't you glad you stumbled across this page? Econogics, we love EVs, and we're here to help.