Federal and State Incentives for Plug-Ins, EV's

Interestingly enough, I know one of the lawyers that drafted this tax code. He claims that the intent of the code was to include EVs and Plug-in Hybrids but to exclude a non-plug-in hybrid like the Prius Liftback, v, or c. This Alt fuels tax code was actually the revival of one from 1996 (IIRC) that did include non-plug-in hybrids. The way the code is written, though, technically does allow for any hybrid that has an EV mode like the 3rd gen Prius, c, and v. It sets no minimum speed or distance requirement on the EV mode. Local dealers are actually advertising the Prius, c, and v as part of this Alt Fuels tax credit. Knowing the lawyer and the intent, that is certainly in the gray area, but the PiP is in the clear. I actually have a coworker that made the claim on his non-plug-in Prius (3rd gen) for the 2011 tax year and pocketed a cool $5k. Of course, this doesn't mean he isn't an audit waiting to happen, but so far it is not being policed very well.

The WV Alt Fuels tax credit is a mess, IMO. It allows vehicles that are capable of running a blend of alt fuels of at least 85% to be included. One of the "alt fuels" is ethanol. So, that makes E85 applicable under this tax incentive. An E85 capable Toyota Tundra (with the big guzzling 5.7L V8, the only flex fuel offering from Toyota) falls under this tax law. The ironic part is that E85 is only available in something like 8 gas stations in the whole state. I've been tempted to swap my 4Runner for an E85-capable Tundra (which I ironically have to go to Kentucky to buy; they aren't technically sold in WV) because it would cost me zero out of pocket, the mileage cost would be minimal because I put all my miles on my Prius, and I'd have a truck for when I need/want one.

 

WJTracy,

I happen to be a proud citizen of Arlington County , famous for the Pentagon, the Cemetery and the "Arlington Rap" of 2009. Its EV/hybrid tax relief varies from year to year. When I owned my 2007 Gen II Prius, the entire Virginia car tax was under County relief (I didn't have to pay any). This year, Arlington relieves the Virginia car tax by 40% for us EV/hybrid owners. Considering the significant chunk of change that Virginia takes for the car tax every year, I'm grateful for the 40%.

re: my OEM EVSE from our earlier posts - "OEM EVSE" means the blue-handled EVSE (charging cord) that comes with the PiP. A member of this and other EV forums, known by his e-moniker "pEEf", ugrades these OEM portable EVSEs to work a bit better. For details, pls google "EVSE Upgrade".

 

For Virginians with PiPs and other EV cars, here's what Virginia's dominant electric utility Dominion VA Power just sent me, about two weeks after they installed my dedicated EV meter. One item is the Utility's letter, the other item is a large refrigerator sticker with their EV rate / time graphic.

I am posting this here for anyone still considering getting onto this pilot program in Virginia. The program is supposed to close for new enrollees by 01 December (details on Dominion VA Power site Dominion). I expect at least the current enrollees to keep this dedicated EV rate whether the pilot program stays active or pancakes in the future. Dom VA Power people told me there is still space available for enrollees.

I frankly expect this to save $$$ for everyone in the future as EV cars get larger traction batteries, as hard-wired EVSE systems get more amperage to handle the increased battery size, and as households buy more than one EV per house.

 

You should change the IRS link to Qualified Vehicles Acquired after 12-31-2009. Also, clicking on Toyota sends you to the right page now, so you can remove that notice about the link being broken.
Thanks!

 

PA has a $1000 rebate for the PiP but you have to apply within 6 months of purchasing it. Since PA is not a roll out state, I bought mine out of state. The dealer didn't know about it, and I didn't realize until after 6 months that I missed the rebate... :-( Hope this post helps someone else!!!

 

Here's the link to PAs rebate: Alternative Fuels Incentive Grant

(and yes - "ouch" is right!!)

 

West Virginia Alternative-Fuel Tax Credit:

35% of the net sale price, purchase minus trade if any , up to $7,500 per plug-in vehicle. Has to have a plug to qualify and you can have more than one. 7500/.35= $21,428 Anything over this gets you the max allowed.
There are credits for charging equipment and add-on batteries also.

Net zero tax minimum income needed per year average
1 year net taxable income of $132,700=$7,500 in tax
2 year spread is $75,000=$3,750
3 year spread is $55,400=$2,500
4 year spread is $45,000=$1,875
5 year spread is $38,320=$1500
6 year spread is $32,800=$1,250
Credit rolls over as long as the vehicle is registered in WV, schedule goes to 2021, and can be allocated between several WV tax paying owners. Think syndicate.
Minus is if you deduct state tax on your Fed form as you don't owe any state tax now.

http://www.state.wv.us/taxrev/forms/2011/schedule-taxRates.pdf
http://www.state.wv.us/taxrev/forms/2011/taxTable.pdf
http://www.state.wv.us/taxrev/forms/2011/personalIncomeTaxFormsAndInstructions.pdf
http://www.state.wv.us/taxrev/forms/2011/it140w.pdf
http://www.state.wv.us/taxrev/forms/2011/aftc1.pdf

 

Where is the form to apply for Federal Tax Credit? I saw a link somewhere, but the form still says 2011. Is there one for 2012?

 

Probably after the turn of the year.

 

Here's the form. Looks like IRS hasn't updated it yet. http://www.irs.gov/pub/irs-pdf/f8936.pdf

 

Yep, that's the one he saw already. I went through this with the TDI and I'm pretty sure the Feds updated the form about halfway through January.