On October 3, 2008, Congress approved the Emergency Economic Stabilization Act of 2008 (HR 1424). Included in the legislation is a tax provision pertaining to plug-in electric vehicles (Sec. 205 of of Title II on the bill). Sec. 205 provides tax credits for purchasers of plug-in electric vehicles that will range from $2,500 to $15,000 per vehicle depending on vehicle size and batter capacity. The credit is $2,500 + $417 for each kilowatt hour of traction battery capacity in excess of 4 kilowatt hours. There are limits as follows:
$7,500 (GVWR < 10,000 lbs) $10,000 (GVWR between 10,000 lbs and 14,000 lbs) $12,500 (GVWR between 14,000 lbs and 26,000 lbs) $15,000 (GVWR > 26,000 lbs)
The credits will be available until 250,000 total plug-in electrics are sold in the U.S. (clock starts 1/1/09).
