Plug-in electric drive motor vehicles are picking up steam.
According to the IRS: Internal Revenue Code Section 30D provides a credit for Qualified Plug-in Electric Drive Motor Vehicles including passenger vehicles and light trucks. For vehicles acquired after 12/31/2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500.
Only the initial purchaser of the vehicle gets this tax credit. A few recent additions to the IRS list of plug-in motor vehicles qualifying for this valuable tax credit include:
- 2022 BMW 745e xDrive qualifies for a $5,836 tax credit
- 2022 MINI Cooper S E Countryman ALL4 qualifies for a $5,002 tax credit
- 2022 MINI Cooper S E Hardtop qualifies for a $7,500 tax credit
- 2021 Porsche Taycan EV qualifies for a $7,500 tax credit
For those of you who enjoy “the finer things in life”, Bentley Motors recently added a vehicle qualifying for the plug-in electric motor vehicle tax credit. Purchasing a new 2020 or 2021 Bentley Motors Bentayga Hybrid SUV provides you with a $7,500 tax credit on your personal tax return.
Please note that General Motors and Tesla vehicles no longer qualify for this tax credit since they each sold more than 200,000 eligible vehicles. You can find the full list of vehicles qualifying for the Plug-in Electric Drive Motor Vehicle federal tax credit by clicking on the IRS Link below: