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With all the energy credits available to a taxpayer who purchases an electric vehicle, would it be possible to stack the credits to get the government pay for your golf cart? Maybe, if you bought it in 2009, but it looks like these loopholes applying to golf carts, have been filled for 2010 and later years. Language was added to the statute that makes it more difficult to get a golf cart type of vehicle to qualify, although it is still possible. Golf carts have come a long way and many are street legal. Keep in mind that most tax benefits apply only to original use equipment, meaning you cannot buy a used machine and receive the same benefit and the vehicle must be purchased by December 31, 2011.
Lets look at the credits that may apply to an electric golf cart:
1- Alternative Motor Vehicle Credit (fuel): $1,500
2- Plug in Electric Vehicle Credit (Form 8834): 10% of the cost, max of $2,500
3- Plug in Electric Drive Motor Vehicle Credit (Form 8936): $2,500 to $7,500
4- New Plug in Conversion Credit (Form 8910): Max of $4,000
5- Qualified Electric Vehicle Passive Activity Credit (Business Form 8810):
1- Purchased for original use with taxpayer (new) no resale.
2- manufactured primarily for use on public streets
3- Gross vehicle weight under 14,000 Lbs
4- Propelled to a significant extent by an electric motor
5- Batter has a capacity of at least 4 kilowatt hours and is rechargeable.
6- Vehicle must be used within the US
7-Vehicle is a low speed vehicle not to exceed 25 MPH rating
1-
Purchased or leased for original use with taxpayer (new) no resale.
2-
manufactured primarily for use on public streets
3-
Gross vehicle weight under 14,000 Lbs
4- Propelled to a significant extent by an electric motor
5- Battery has a capacity of at least 4 kilowatt hours and is rechargeable.
6-
Vehicle must be used within the US
7- Vehicle treated as a motor vehicle for purposes of title II of the Clean Air Act.
Restrictions relating to definitions of terms:
Motor Vehicle. The term "motor vehicle" means any vehicle that is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. Not a vehicle that is manufactured primarily for off-road use, such as primarily for use on a golf course.
For some credits, the vehicle must be able to obtain a speed of at least 25 miles per hour, and, for others, must not exceed a maximum speed of 25 miles per hour.
IRC Section 30D provides for a credit for certain new qualified plug-in electric drive motor vehicles. The credit is equal to the sum of: (1) $2,500, plus (2) 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. Under § 30D (b) (3), that portion of the credit determined by battery capacity cannot exceed $5,000. Therefore, the total amount of the credit allowed for a vehicle is limited to $7,500.
The new qualified plug-in electric drive motor vehicle credit phases out for a manufacturer's vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) ("phase-out period"). Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit if acquired in the first two quarters of the phase-out period and 25 percent of the credit if acquired in the third or fourth quarter of the phase-out period. Vehicles manufactured by that manufacturer are not eligible for a credit if acquired after the phase-out period. After December 31, 2009, a vehicle that qualifies for a credit under § 30 does not qualify for the credit under § 30D.
If a vehicle qualifies for the qualified plug-in electric drive motor vehicle credit, the vehicle does not qualify for the alternative motor vehicle credit or the qualified plug-in electric vehicle credit. For vehicles acquired after 2009, a vehicle that qualifies for the qualified plug-in electric motor vehicle credit does not qualify for the qualified plug-in electric drive motor vehicle credit.