Question

Am I eligible to claim the qualified plug-in electric vehicle tax credit for my car?

Answer

You can claim the qualified plug-in electric drive motor vehicle credit (the electric vehicle credit is the name of an expired credit) if your car meets various criteria. It’s worth the time to determine if you qualify, as the credit for electric vehicles can be up to $7,500 of your expenses to buy a qualifying vehicle.

The value of this credit might be lower if the auto manufacturer has already sold a certain number of vehicles. For some manufacturers it is no longer available. See the IRS’s Index to Manufacturers. Additionally, this credit is not refundable, so you won’t receive a refund for the unused portion of the credit. You also can’t carry the credit over to your next year’s return.

To qualify for the qualified plug-in electric drive motor vehicle credit, these conditions must be true:

  • You own the vehicle.
  • You placed it in service in the current tax year.
  • The original use of the vehicle began with you.

For a four-wheeled vehicle, your vehicle also must:

  • Have a gross vehicle weight of less than 14,000 pounds
  • Be propelled mostly by an electric motor that draws electricity from a battery that:
    • Has a capacity of at least four kilowatt hours
    • Can be recharged from an external source of electricity
  • Be certified as qualifying for the electric car tax credit

For a two-wheeled or three-wheeled electric vehicle, the tax credit is available if it:

  • Is a new vehicle with two or three wheels
  • Can reach a speed of 45 mph or more
  • Is propelled to a significant extent by an electric motor
  • The motor draws electricity from a battery with a capacity of at least 2.5 kilowatt hours
  • Can be charged from an external source of electricity
  • Has a vehicle weight of less than 14,000 pounds

How do I claim the qualified plug-in electric drive motor vehicle credit if I’m using H&R Block Software?

If you’re using H&R Block Software to complete your return, we’ll calculate your qualified electric vehicle credit for you — helping ensure you get your maximum refund.

To claim your qualified electric vehicle credit:

  1. Go to the Federal section of your return.
  2. Choose Credits.
  3. Choose Plug-In Electric Drive Motor Vehicle Credit on the list of available credits.
  4. Answer the questions shown on screen so we can calculate your credit.

For more product help, visit our Software Support center.

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