If you’re in need of a new vehicle, or just want to upgrade to something more environmentally friendly, there is now a tax credit that can offset the cost of certain makes and models that will also reduce your carbon footprint.
The (up to) $7,500 credit counts toward new qualified plug-in electric vehicles or fuel cell vehicles. To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles), with next year’s tax return.
You will need to provide your vehicle’s VIN. Here is a list of some of the qualified vehicles and more information about the credit. There are other automakers that have agreed to become qualified manufacturers but have yet to submit a list of eligible models to the IRS; for example, Honda and Toyota. It is also recommended to confirm with the dealership that the vehicle you want to purchase qualifies.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.