earther wrote:As a teacher, my salary is low enough that there's NO WAY I'll ever come close to paying $7500 in federal taxes in a single year... not even half that.
However, a tax credit is a tax credit -- I can't really complain about the government incentivizing me to purchase an EV just because rich people are incentivized more.
evnow wrote:I'm not sure whether it is just income tax or income tax + payroll taxes.
Payroll taxes (Social Security tax (FICA) and Medicare tax) do not figure at all. I'm pretty sure
they have never
figured in calculating one's Federal income tax liability. I just looked and
there is nothing on Form 1040 nor Shedule A (for itemizing deductions) regarding FICA or Medicare
Internal Revenue Bulletin: 2009-48, New Qualified Plug-in Electric Drive Motor Vehicle Credit
Section 8. DATE OF APPLICABILITY
leafygreen wrote:By the way, it also says: "The credit expires December 31, 2010". Maybe it will be extended?
"This notice is applicable to plug-in electric drive motor vehicles acquired (within the meaning of section 4.07 of this notice) after December 31, 2009
But it does not specifically say when the end date is.
Regarding how long the tax credit will be available:
Cannot be rolled over - must be used in the tax year when you bought the vehicle (as legally described by your state)
Can be used with the AMT
Expires when each manufacturer has sold 200,000 EV units (a bit more complex than that, but that's the gist of it)
Specifically, according to the American Recovery and Reinvestment Act of 2009
,SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
(e) Limitation on Number of New Qualified Plug-in Electric Drive Motor Vehicles Eligible for Credit.
The tax credit for a vehicle will be in effect until the end of the quarter in which the manufacturer (Nissan in this case) sells its 200,000-th unit of the vehicle (Leaf).
Leaf's purchased in the next two quarters get 50% of the tax credit (max $3750).
Leaf's purchased in the next two quarters get 25% of the tax credit (max $1875).
Leaf's purchased subsequent to that get no tax credit.
IBELEAF wrote:i've been playing with Turbo Tax software. The interesting part is that irs doesn't care how much you paid for it to calculate the refund...
A Leaf's selling price does not factor into the equation. Paying X dollars below invoice or
Y dollars above MSRP does not affect the amount of the tax credit.
SanDust wrote:The credit is based on the size of the battery pack. Any vehicle with a battery pack of 16 kWh or larger qualifies for the $7500 credit.
Again, according to American Recovery and Reinvestment Act of 2009
SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
(d) New Qualified Plug-in Electric Drive Motor Vehicle.
To qualify, a vehicle must have 4 wheels
, has a GVWR of less than 14,000 lbs
, and has a battery capacity of more than 4 kWh
, among other things.
The credit is calculated as:
1. $2500, plus
2. $417 for each kWh battery capacity above 4 kWh, not to exceed $5000
In the case of the Leaf, this works out to be the max, $7500.
(It's interesting to note that the wording indicates that if the vehicle has a battery capacity of 4.9 kWh, it does not qualify for part 2. of the credit at all.)