Fw: taxes for ev's (and misc)

["Jon \"Sheer\" Pullen" <sheer@brassrat.net>]

information from my SO, who keeps track of taxes around here:

[I apologize if this is OT]

----- Original Message -----
From: Phoebe Ayers
To: sheer@brassrat.net
Sent: Sunday, March 31, 2002 1:36 PM
Subject: taxes for ev's (and misc)


The form to claim a credit for an ev that is for your use and that is
primarily powered by rechargable batteries is form 8834 --
http://www.irs.gov/pub/irs-pdf/f8834.pdf

There are basic instructions attached; the credit for a vehicle placed in
service in 2001 is 10%. The credit for a vehicle placed in service in 2002
is 7.5%. The maximum credit allowed for 2001 is $4000; therefore it is in
your best interest if you have a vehicle placed in service during 2001 that
cost at least $40,000. This is a direct credit and you report it on form
1040 line 50.
You will have to figure and attach form 6251, Alternative Minimum Tax, to
figure out if you can claim the credit, and to do that you will need
schedule A (if you file it) and the first half of your 1040 handy.

The rules are explained in pub. 535, business expenses (for whatever
reason) -- http://www.irs.gov/pub/irs-pdf/p535.pdf on p. 44. You can also
take a limited deduction for a clean-fuel vehicle, and this is explained in
pub. 535 also (vehicles such a prius or insight do qualify -- so check it
out if you own one of these cars -- as does "refueling property", and if you
own an electric or cng bus you can take a whopping $37,400).

PLEASE NOTE: These credits are apparently BOTH being phased out completely
by 2005. So get it while you can.

{Laws: I don't know when this was decided, as the IRS doesn't seem to have
old publications on it's website. However, a Rep Pascrell, Bill, Jr in the
house of Reps. introduced HR 3631 on Jan. 24 that would expand the ev credit
to three-wheeled vehicles and extend it to 2007; that bill is currently
sitting in commitee. H.R.2511 in 2001 provided the rules and regulations for
what appears to be the current credit, although it called for the credits to
be phased out in 2007.There was also senate bill 760 which was the CLEAR act
introduced by Orrin Hatch (!) that was to encourage the nationwide
production of new motor vehicle technologies. It went to the finance
commitee on 4/24/01 and was never heard from again. Same thing happened to
its sister bill, hr1864. }