Understanding the Electric Car Tax Credit

February 17th, 2011
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A car driving down a money road.

President Barrack Obama has made an initiative to put 1 million electric vehicles of the roads by 2015, in efforts to conserve the use of foreign oil resources and to lower the levels of harmful emissions into the atmosphere.  The drive behind car owners switching to green vehicles is the proposed plan that will put up to $7,500 directly into the hands of car buyers. This direct rebate proposed by Obama eliminates the hassle of jumping through tax hoops to receive the credit.

Currently, there is a tax credit in place for those who purchase a plug-in electric vehicle but the credit does not arrive until the annual tax season, where individuals must file for the credit. The current tax credit ranges between $2,500 and $7,500 and is dependant upon the size of the vehicles battery and its ability to be charged by plug-in energy.  This electric car credit, attractive at face value, is the source for $33 million in credits to be wrongly or mistakenly filed for the 2010 tax season.  With various “green” or hybrid vehicles, users may be confused with the qualifications for the tax credit. The requirements for the 2010 Federal Tax Credit for Electric vehicles are as follows:

  • Vehicle must be purchases in or after 2010
  • The vehicle must be made by a manufacturer
  • Must be part of the Clean Car Act
  • Propelled by electric motor
  • Must be under 14,00 lbs
  • Must draw energy from rechargeable electric battery

If your vehicle is currently not under the required tax credit and visit www.autocricket.com to compare rates for a new 2010 or 2011 electric vehicles. Switching your vehicle for an electronically powered vehicle, you may earn a $7,500 tax credit for the following year and help protect the environment.

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