IRS Issues Guidelines for Low-Speed Electric Car Manufacturers

On July 10, the IRS issued Notice 2009-58, which provides procedures for car manufacturers to certify that their vehicles qualify for the new plug-in electric vehicle credit under IRC § 30.

Taxpayers who buy a qualified electric vehicle between Feb. 17, 2009, and Jan. 1, 2012, can take a credit equal to 10% of the vehicle’s cost. Qualified electric vehicles under section 30 are different from qualified plug-in electric drive vehicles, which get a tax credit under section 30D, and taxpayers cannot take both credits for the same vehicle. The section 30 credit applies to low-speed (under 25 mph) four-wheel electric vehicles weighing less than 3,000 pounds (but not golf carts) and two- or three-wheel electric vehicles.

Manufacturers must submit to the IRS a certification that their vehicles meet the requirements of section 30 and provide specific information required by the notice. The manufacturer will receive acknowledgment from the IRS and can then certify to purchasers that its vehicles are eligible for the section 30 credit.