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Tax credit 2013

Posted: Sun May 12, 2013 1:04 pm
by Archsteve
Hi all just bought a miev in Albuquerque for 20500 before tax credit. My search has shown that 2013 limit is 2000. Is this right? Dealer was saying 7500 could still be available. Any ideas?

Re: Tax credit 2013

Posted: Sun May 12, 2013 1:16 pm
by PV1
As far as I know, the federal tax credit is still $7,500. Maybe he was talking about your state credit/rebate? I know Pennsylvania was $3,500, it's now $3,000, and may be gone after June 30.

Re: Tax credit 2013

Posted: Sun May 12, 2013 1:24 pm
by BillThompsonMIEV
I am assuming you purchased this vehicle as a new (never been titled) vehicle. Go to www.irs.gov; use the search feature to find IRS Form 8936. That is the form you use to claim the credit. The maximum credit is $7,500. In order to take full advantage of the credit, you must have a tax liability (see line 46 of your 2012 Form 1040 tax return). If the number on that line is $7,500 or greater, you get the full credit. If the number is less than $7,500, you get that number as the credit. The credit is a "non-refundable" credit.

Re: Tax credit 2013

Posted: Sun May 12, 2013 3:46 pm
by Archsteve
Yep. Brand new. I just checked the form. It says 2500 is the max now. Bummer. A bit misleading by Mitsubishi.

Re: Tax credit 2013

Posted: Sun May 12, 2013 5:07 pm
by olagon
BillThompsonMIEV wrote:I am assuming you purchased this vehicle as a new (never been titled) vehicle. Go to http://www.irs.gov; use the search feature to find IRS Form 8936. That is the form you use to claim the credit. The maximum credit is $7,500. In order to take full advantage of the credit, you must have a tax liability (see line 46 of your 2012 Form 1040 tax return). If the number on that line is $7,500 or greater, you get the full credit. If the number is less than $7,500, you get that number as the credit. The credit is a "non-refundable" credit.


Huh? It's now 2500 max for all cars bought in 2013?

Re: Tax credit 2013

Posted: Sun May 12, 2013 5:11 pm
by BillThompsonMIEV
I respectfully disagree with you. The $2,500 credit is for business use of the vehicle. Look closely at Form 8936, particularly Line 4 of the form. Then go to page 4 of the form and read the details about Line 4. The credit is $7,500.

Re: Tax credit 2013

Posted: Sun May 12, 2013 5:59 pm
by jz1
I think there's still a $2500 tax credit for low speed electric vehicles. I can't remember what the form is, but I would guess this is what the OP is looking at. The I-MiEV qualifies for the $7500 tax credit.

Re: Tax credit 2013

Posted: Sun May 12, 2013 6:06 pm
by Archsteve
I looked again at most recent form. Part 2 sAys 2500. I do hope I am wrong. I didn't see much to help on line 4. Would you look at it again on the IRS site and help me figure it out?! Thanks folks.

Re: Tax credit 2013

Posted: Sun May 12, 2013 6:14 pm
by olagon
I thought Obama was looking at increasing the tax credit to $10,000 and to have it taken at point of sale? Anyone have an update on this? http://insideevs.com/2014-budget-propos ... thru-2018/

Re: Tax credit 2013

Posted: Sun May 12, 2013 6:19 pm
by olagon
By the way, in case anyone was wondering, you can't carry over the tax credit and if you sell your car there may be recapture rules coming that will impact you. So if you don't have enough of a tax liability, you won't get the full credit. This tax credit is also calculated last after other tax credits are applied. Some info here: http://taxes.about.com/od/deductionscre ... edit_2.htm