Tax Credits for Buying Electric and Hybrid Cars
There are two tax credits for taxpayers who bought an electric or alternative motor vehicle car in 2014:
- Alternative Motor Vehicle Tax Credit
- Qualified Plug-In Electric Drive Motor Vehicle Tax Credit
What is the Alternative Motor Vehicle Tax Credit?
The Alternative Motor Vehicle Tax Credit is a credit that only applies to new cars, and is for placing a qualified fuel cell vehicle in service and may only be claimed by the original purchaser of the vehicle. A qualified fuel cell motor vehicle is a vehicle that is propelled by power from one or more cells which convert chemical energy directly into electricity.
Below is a list of certified fuel cell motor vehicles that qualify for the credit:
- Mercedes-Benz 2012 F-Cell
- Honda 2012 FCX Clarity Fuel Cell Vehicle
- Honda 2011 FCX Clarity Fuel Cell Vehicle
- Honda 2010 FCX Clarity Fuel Cell Vehicle
- Honda 2009 FCX Clarity Fuel Cell Vehicle
- Honda 2008 FCX Clarity Fuel Cell Vehicle
How Do I Claim the Alternative Motor Vehicle Tax Credit?
To claim the credit, complete Form 8910 and attach it to Form 1040. Include your credit amount in line 53 of Form 1040. Check box c and enter "8910" on the line next to that box.
On efile.com, you can prepare and efile Form 8910, along with your Form 1040. Once you answer a few simple questions about your tax situation, the efile software will generate the forms for you and help you complete them accurately.
What is the Qualified Plug-In Electric Drive Motor Vehicle Tax Credit?
The Qualified Plug-In Electric Drive Motor Vehicle Credit is a credit for placing a new qualified plug-in electric drive motor vehicle in service. This is a vehicle that is run to a significant extent by an electric motor and draws electricity from a battery and is capable of being recharged from an external source of electricity.
What Cars Qualify for the Qualified Plug-in Electric Drive Motor Vehicle Tax Credit?
All of the following plug-in hybrids and electric cars qualify for the Credit for Qualified Plug-In Electric Drive Motor Vehicles and have different credit amounts depending on the year of the vehicle:
- AMP GCE and MLE Electric Vehicle
- Azure Dynamics Transit Connect Electric Vehicle
- BMW i3 Sedan and i3 Sedan with Ranger Extender, i8 Sedan
- Boulder Electric Delivery Van DV-500, Electric Shuttle DV500, Electric Flat Bed DV-500, Electric Service Body DV-500
- BYD Motors e6 Electric Vehicle
- Chrysler Fiat 500e
- CODA Sedan (Electric Vehicle manufactured by CODA Automotive Inc.)
- EVI-MD (Medium Duty) Electric truck, EVI-WI (Walk-In) Electric truck
- EMC Model E36 7 Passenger Wagon, Model E36t Pick-Up truck, and Model E36v Utility Van
- Fisker Karma Sedan
- Ford Focus Electric, Ford C-MAX Energi, Ford Fusion Energi
- GM Chevrolet Volt, Chevrolet Spark EV, Cadillac ELR
- Honda Accord Plug-In Hybrid
- Mercedes-Benz smart Coupe/Cabrio EV, B-Class EV
- Mitsubishi i-MiEV (Electric Vehicle)
- Nissan Leaf
- Porsche 918 Spyder, Panamera S E Hybrid, Caynee S E-Hybrid
- Smart Fortwo Electric Drive Vehicle
- Tesla Roadster, Tesla Model S Vehicle
- Think City EV (Electric Vehicle)
- Toyota Prius Plug-in Electric Drive Vehicle, Toyota RAV4 EV
- VIA 2500 Extended Range Electric Passenger Van and Electric Cargo Van, 1500 Extended Range Electric Truck 4WD and 2WD (All body styles)
- Wheego LiFe Electric Vehicle
- Zenith Electric Van
More green tax savings: find out how to get a tax credit for energy-efficient improvements to your home.
How Do I Claim the Credit for Qualifed Plug-in Electric Drive Motor Vehicles?
To claim the credit, complete Form 8936 and attach it to Form 1040.
On efile.com, you can prepare and efile Form 8936, along with your Form 1040. Once you answer a few simple questions about your tax situation, the efile software will generate the forms for you and help you complete them accurately.
What about the 2010 Alternative Motor Vehicle Credit for Hybrid Cars?
The old 2010 Alternative Motor Vehicle Credit for hybrid cars expired. But if you bought a qualifying vehicle in 2010 and you did not claim it on your 2010 tax return, you can still get the credit by filing an amended return.
Taxpayers may claim the credit on their 2010 tax returns or 2010 amended returns if they bought a qualified hybrid or alternative fuel vehicle in 2010. The credit is only available to the original purchaser of the vehicle and cannot be claimed by an individual who leased it or bought it used.
Is there a Credit for Plug-In Vehicle Conversion Kits?
The tax credit for converting a normal car into a plug-in hybrid vehicle expired at the end of 2011. If you purchased a conversion kit and placed it into service in 2011, you may still be able to claim this credit on a 2011 amended tax return.
See what other tax credits and tax deductions for which you may qualify.