Bailout Bill Tax Credits: Who Qualifies?

kristen — Wed, 08 Oct 2008 10:50:01 +0000

After I posted a synopsis of the alternative fuel tax credits here on GoodGreenCars Monday, astute reader Emily wondered if electric-only vehicles could get the credit, or if this particular sweetener only applied to PHEVs like the Volt.

Here’s the straight dope from the bill, as translated into English from Congress-ese by yours truly.

A New, Qualified, Plug-In Electric Drive Motor Vehicle, according to the recently passed bailout bill, means a vehicle that:

Has a battery with at least a 4 kwh capacity (your tax credit will go up with the size of your battery)
Uses an off-board source of energy to recharge the battery (an outlet or generator would do)
Is certified under the Clean Air Act and meets California’s low emissions vehicle standard
Will be put on the road for the first time by the taxpayer
Was bought for use by the taxpayer, not for resale
Was made by a manufacturer — home conversions do not get this credit

So your 6-year-old daughter’s battery-powered Barbie car doesn’t get the credit, nor does my friend Tim’s Porsche 914 conversion. You have to buy the car brand-new and use it yourself, no dealers or used cars allowed. And any plug-in vehicle should meet the emissions standards with flying colors.

If you have further questions, read the text of the bill here (look for Section 205 on page 186 of the PDF).

PHEVs Get a Tax Break

kristen — Mon, 06 Oct 2008 18:53:08 +0000

The bailout bill passed by Congress last week included “sweeteners,” as anyone with a radio, TV, Internet connection, or newspaper subscription has learned by now. What didn’t make the top of the news was the fact that a couple of these provisions to sweeten the Wall Street bailout bill directly affect alternative fuels — in a good way, for once.

Buyers of plug-in hybrid vehicles will receive a $2500 tax credit, plus $417 per kilowatt hour for batteries greater than 4 kwh. This makes the Chevy Volt $7500 cheaper, as GM’s Volt blog was happy to point out. The credit will apply fully to the first 250,000 PHEVs sold, then will be phased out over the next year’s worth of sales after than landmark number is reached. (See Section 205 on page 186 of the bill.)

The bill also extends the 30% clean-burning fuel property tax credit to electricity, and moves the deadline for taking the credit out a year to December 2010. (See Section 207 on page 197 of the bill.)

Since that information, while useful, was dry as sand, here’s video of a souped up Smart ForTwo beating the pants off a Ferrari in the quarter-mile (38 seconds):

Good Green Cars » bailout bill

Bailout Bill Tax Credits: Who Qualifies?

PHEVs Get a Tax Break