IRS adds vehicles to qualified plug-in vehicle list
TAX ALERT |
Authored by RSM US LLP
The IRS recently added vehicles to its list of eligible vehicles for the section 30D credit for qualified plug-in electric drive motor vehicles. The new vehicles eligible for the credit are the 2021 Hyundai Ioniq Electric Battery vehicle and the 2021 Hyundai Ioniq Plug-In Hybrid Electric vehicle. (For a full list of eligible vehicles, refer to Qualified Plug-In Electric Drive Motor Vehicles (IRC 30D).)
Section 30D allows for a credit for qualified plug-in electric drive motor vehicles, including passenger vehicles and light trucks, for the taxable year in which it is placed in service. For vehicles acquired after Dec. 31, 2009, the credit is equal to the base amount of $2,500 plus, for vehicles that draw propulsion energy from a battery with at least five-kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt-hour of battery capacity in excess of five-kilowatt hours. The total amount of the credit allowed for a vehicle is $7,500. Moreover, the credit begins to phase out for vehicles when 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States
The newly added 2021 Hyundai Ioniq vehicles are eligible for a credit of $7,500 for the electric battery version and $4,543 for the plug- in version.
Taxpayers who have questions on how these credits apply and other rules for claiming the credit should consult their tax advisers.
Call us at +1 213.873.1700, email us at firstname.lastname@example.org or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by Debbie Gordon and originally appeared on 2021-06-23.
2021 RSM US LLP. All rights reserved.
The information contained herein is general in nature and based on authorities that are subject to change. RSM US LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM US LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Vasquez & Company LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.
For more information on how Vasquez & Company LLP can assist you, please call +1 213.873.1700.
Subscribe to receive important updates from our Insights and Resources.