tax Credit for 2013 for Home Charger install

[LUXMAN]

I was wondering if anyone knew about the tax credit for installing a Home Charger?

I saw that the "Alternative Fuel Vehicle Refueling Property Credit", IRS Form 8911 had been extended thru 2013. the directions say "...the property must be installed on property used as your main home" ( yes they did use property twice in the same sentence).

I think I can claim 30% of the cost up to $1000. Is that what Ya'll are seeing?

LUXMAN

 

[cgaydos]

I was wondering if anyone knew about the tax credit for installing a Home Charger?

I saw that the "Alternative Fuel Vehicle Refueling Property Credit", IRS Form 8911 had been extended thru 2013. the directions say "...the property must be installed on property used as your main home" ( yes they did use property twice in the same sentence).

I think I can claim 30% of the cost up to $1000. Is that what Ya'll are seeing?

LUXMAN

I just did exactly that for my 2012 taxes. Turbotax had me put in the dollar amount without much explanation. I claimed the cost of the EVSE and the parts needed for the 240V circuit (I did the work myself). If you have someone else do the work you can claim their cost as well.

NOTE that on January 1, 2012 this credit actually expired, but it was renewed in late 2012 and is retroactive for the whole year.

Now, I've wondered if the EVSEupgrade fits this model since it isn't installed in the home. Probably you could claim the 240V circuit for the EVSE upgrade if it were dedicated for that purpose, but ultimately that could end up in tax court since that is a vague part of the law.

 

[planet4ever]

See this thread, which discusses the credit quite thoroughly, including EVSEupgrade eligibility: EVSE tax credit reinstated

See also the following older thread which applies to the reinstated credit exactly as it did to the original credit. The bottom line is that most people can't take the EVSE credit in the same year they take the $7,500 credit. Since the EVSE credit expires at the end of this year, your best chance of getting it is either (1) Lease rather than purchase the car, or (2) Get the EVSE set up this year and wait until next year to get the car.
EVSE - credit ... seems to be more complex than simply AMT

By the way, LUXMAN, what you are asking about is an EVSE, a.k.a. charging station, not a charger. The charger is built into the car.

Ray

 

[LUXMAN]

Thank you for the correction and Links.
My SV is supposed to arrive Friday. Almost cant wait!
BUt I am leasing it so I can get both. I will definately file for this. Thanks
LUXMAN

 

[cgaydos]

See this thread, which discusses the credit quite thoroughly, including EVSEupgrade eligibility: EVSE tax credit reinstated

See also the following older thread which applies to the reinstated credit exactly as it did to the original credit. The bottom line is that most people can't take the EVSE credit in the same year they take the $7,500 credit. Since the EVSE credit expires at the end of this year, your best chance of getting it is either (1) Lease rather than purchase the car, or (2) Get the EVSE set up this year and wait until next year to get the car.
EVSE - credit ... seems to be more complex than simply AMT

Thanks for the clarifiation - I had no idea about the issue with the $7500 credit and EVSE credit in same tax year.

Regarding EVSEupgrade eligibility, having read those threads I'd still have to say it's a grey area of the tax law. You can certainly claim it, but if audited it is possible it would be disallowed because it is not installed at your property but instead is portable.

 

[planet4ever]

Regarding EVSEupgrade eligibility, having read those threads I'd still have to say it's a grey area of the tax law. You can certainly claim it, but if audited it is possible it would be disallowed because it is not installed at your property but instead is portable.

Quite true. I did claim it on my 2011 tax forms, and the IRS hasn't complained yet. I personally think I can make a pretty good case for it, though many people don't use it the way I do. I have the EVSE brick attached to a board with two deck screws. The board is part of a protective cove enclosing the outlet. The cove is permanently attached to the outside of my house. I have taken those screws out and unplugged the unit exactly twice in the two years I have had it. So for me it really is a wall-mounted level 2 charging station.

Ray

 

[LUXMAN]

OK. I was just looking at my taxes for the upcoming year and am trying to wrap my head around this.
I understand the credit and all. But some people in other threads were talking about the AMT. As I look at the 2012 Form 1040. It appears you figure your tax to include AMT on line 46. THEN you subtract the credits and come out with a total tax on line 55 then on 61 (if you dont have other taxes to add back in).
So even if you are subject to the AMT, wouldn't you get the full $7500 credit??

LUXMAN

Note. Right now I am planning on only claming the 30% credit for the EVSE since I am leasing, but wifey is wanting an EV too. So if I do buy now or in the future I want to know how the credit is working.

 

[cgaydos]

OK. I was just looking at my taxes for the upcoming year and am trying to wrap my head around this.
I understand the credit and all. But some people in other threads were talking about the AMT. As I look at the 2012 Form 1040. It appears you figure your tax to include AMT on line 46. THEN you subtract the credits and come out with a total tax on line 55 then on 61 (if you dont have other taxes to add back in).
So even if you are subject to the AMT, wouldn't you get the full $7500 credit??

LUXMAN

Note. Right now I am planning on only claming the 30% credit for the EVSE since I am leasing, but wifey is wanting an EV too. So if I do buy now or in the future I want to know how the credit is working.

Right, the $7500 credit is not subject to AMT, but you do need to have federal tax liability of $7500 in that tax year to get the full credit. Some people with less than $7500 of tax liability have done certain things to adjust their tax liability up to take advantage of the full credit, such as over-contribute to an IRA.

 

[LUXMAN]

Thanks cgaydos.

Unfortunately I am subject to enough taxes to take advantage of the credit fully but sometime borderline AMT.

I see you have 2 leafs in Colorado (I am assuming Denver) . May I ask why 2? and do you keep an ICE vehicle?
How do they handle in the snow?

LUXMAN

 

[cgaydos]

Thanks cgaydos.

Unfortunately I am subject to enough taxes to take advantage of the credit fully but sometime borderline AMT.

I see you have 2 leafs in Colorado (I am assuming Denver) . May I ask why 2? and do you keep an ICE vehicle?
How do they handle in the snow?

LUXMAN

We're about an hour south of Denver. We have 5 drivers with kids in schools and various activities - most of which are pretty far away from home. The longest regular round trip is 58 miles - the LEAF that does that (twice weekly) will usually be charged and ready for another 45 mile round trip later the same day. I actually work from home (when not traveling for business) so no commute, but we still log an average of over 100 miles/day in the two LEAFs. We have two ICEs, but planning to sell off one soon (the hybrid) and then we'll keep the 8 year old Sienna AWD for snow days, carrying big things, and long trips. The two ICEs get driven about once/week each right now.

LEAFs are fine in snow if the road has been cleared and with sand on the hills - better than most similar-sized FWD cars (guessing due to the weight and weight distribution). During bad snow we stick with the AWD Sienna.

 

[planet4ever]

OK. I was just looking at my taxes for the upcoming year and am trying to wrap my head around this.
I understand the credit and all. But some people in other threads were talking about the AMT. As I look at the 2012 Form 1040. It appears you figure your tax to include AMT on line 46. THEN you subtract the credits and come out with a total tax on line 55 then on 61 (if you dont have other taxes to add back in).
So even if you are subject to the AMT, wouldn't you get the full $7500 credit??

The problem is not with the $7500 credit. You can probably get that if you have enough income. And the problem with the EVSE credit is not on Form 1040 itself but on line 18 of form 8911. There you are comparing your tax after taking credit for $7500 and the EVSE to the TMT for AMT without taking the credits. If the TMT comes out higher, and it usually will, you lose.

Ray

 

[Epi117]

Oregon denied my credit for my home charging unit, becuase i purchased a plug in unit.

"(11) alternate fuel fueling systems must be permanently installed to meet all state and local safety codes and be capable of re-fueling or recharging a vehicle within 14 hours"

 

[LUXMAN]

OK. I was just looking at my taxes for the upcoming year and am trying to wrap my head around this.
I understand the credit and all. But some people in other threads were talking about the AMT. As I look at the 2012 Form 1040. It appears you figure your tax to include AMT on line 46. THEN you subtract the credits and come out with a total tax on line 55 then on 61 (if you dont have other taxes to add back in).
So even if you are subject to the AMT, wouldn't you get the full $7500 credit??

The problem is not with the $7500 credit. You can probably get that if you have enough income. And the problem with the EVSE credit is not on Form 1040 itself but on line 18 of form 8911. There you are comparing your tax after taking credit for $7500 and the EVSE to the TMT for AMT without taking the credits. If the TMT comes out higher, and it usually will, you lose.

Ray

What do you mean "lose"? Do you mean no credit at all or just no credit for the EVSE? Guess I need to look into it deeper then.

 

[planet4ever]

The problem is not with the $7500 credit. You can probably get that if you have enough income. And the problem with the EVSE credit is not on Form 1040 itself but on line 18 of form 8911. There you are comparing your tax after taking credit for $7500 and the EVSE to the TMT for AMT without taking the credits. If the TMT comes out higher, and it usually will, you lose.

What do you mean "lose"? Do you mean no credit at all or just no credit for the EVSE? Guess I need to look into it deeper then.

Just no credit for the EVSE. As I said, you can probably get the $7500 credit if you have enough income. (The "probably" qualifier there was referring to possible other loopholes you might be using.)

Ray

 

[roseburcaw]

Tax credit is truly needed nowadays. Plus, we are most likely to use the efficient and earth friendly fuels or alternative ones. Talking about tax credits, the American Opportunity Credit has been extended until 2017. It allows for students earning $80,000 or less a year to claim a dollar-for-dollar credit on the first $2,000 of college-related expenses. In addition, it allows them to claim 25 percent of their next $2,000 worth of expenses. That effectively cuts $4,000 worth of expenses by more than half. Married couples making $160,000 or less also qualify. Article resource: Tax Credits

 

[Publius]

Oregon denied my credit for my home charging unit, becuase i purchased a plug in unit.

"(11) alternate fuel fueling systems must be permanently installed to meet all state and local safety codes and be capable of re-fueling or recharging a vehicle within 14 hours"

I got a plug in unit, too. It's screwed into the side of my house, which meets my standard for permanent. I guess I'll find out next tax season when I submit my return if that will affect my credit in NY.

 

[Stanton]

Tax credit is truly needed nowadays. Plus, we are most likely to use the efficient and earth friendly fuels or alternative ones. Talking about tax credits, the American Opportunity Credit has been extended until 2017. It allows for students earning $80,000 or less a year to claim a dollar-for-dollar credit on the first $2,000 of college-related expenses. In addition, it allows them to claim 25 percent of their next $2,000 worth of expenses. That effectively cuts $4,000 worth of expenses by more than half. Married couples making $160,000 or less also qualify. Article resource: Tax Credits

That is GREAT news! I've got at least that many years left of kids in college; I have to admit that made for a nice refund this year.

I plan on doing that "plug-in" EVSE credit thing this year as well, but I don't see how they can disallow it if it's screwed/nailed to the wall. How it gets power shouldn't be the only interpretation of what "permanent" means.

 

[ehunter]

OK, I spent some time on this and have things figured out why some claim to being able to leverage the Personal Charging Station Credit (PCSC) and others not.

The summary is, a person will only benefit from the PCSC if their tax before any credits (TBC) [line 1040 line 44] is greater than their theoretical AMT by $7500. That is, for every dollar (TBC-$7500) > AMT, you gain the same for the credit until you reach the $7500 maximum.

This is what it all boils down to.

Turbo tax has got it right. They just dont explain the circumstances very well why the credit washes away dependent on ones tax liability with respect to the AMT.

 

[ehunter]

Error in my above post:
for every dollar (TBC-$7500) > AMT, you gain the same for the credit until you reach the $7500 maximum.

This should read: until you reach the 30% cost of the station+installation.