Monday, February 23, 2015

I Purchased a Hybrid Car. Do I Get a Tax Credit?

The short answer is yes!  The vehicle must be new not used, you must have your VIN number and appear as a qualifying car on the IRS website.   But eventually these credits will disappear in the coming years once each car maker sells their quota of 200,000.  Use Form 8936 Qualified Plug-In Electric Drive Motor Vehicle Credit.

See if your vehicle is listed here with the IRS:

http://www.irs.gov/Businesses/Qualified-Vehicles-Acquired-after-12-31-2009

Form 8936

http://www.irs.gov/pub/irs-pdf/f8936.pdf

Instructions for Form 8936

http://www.irs.gov/uac/Form-8936,-Qualified-Plug-in-Electric-Drive-Motor-Vehicle-Credit


COLORADO state tax payers get an additional refundable state credit via Form DR0617 Innovative Motor Vehicle and Innovative Truck Credits.

Instructions for CO  Innovative Motor Vehicle and Alternative Fuel Credit

https://www.colorado.gov/pacific/sites/default/files/Income67.pdf



OTHER REFERENCES:
http://www.greencarreports.com/news/1085549_when-do-electric-car-tax-credits-expire
http://www.washingtonpost.com/cars/federal-tax-credits-for-plug-in-hybrids-electric-cars-what-you-need-to-know/2014/08/20/0ae02718-2886-11e4-8b10-7db129976abb_story.html

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