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IRS rejecting claim for Hymotion 2009 Prius conversion

Discussion in 'Prius PHEV Plug-In Modifications' started by stuartestrand, Feb 18, 2012.

  1. stuartestrand

    stuartestrand New Member

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    Is anyone else having a problem with IRS rejecting a claim for energy credit tax rebate for Hymotion kits installed in 2009 into 2009 Prius? I bought the car because Hymotion and their local installer Green Car Co, advertised it as qualifying for the rebate. I claimed the rebate based on Form 8936 under IRC 30D , for vehicles purchased new with a conversion to plug-in electric power, as explained in Notice 2009-89. But the tax examiner rejected the rebate and keeps referring to the hybrid rebate which expired on Oct 1 2007. It looks like I need a lawyer. Any advice, please?!
     
  2. KK6PD

    KK6PD _ . _ . / _ _ . _

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    1-800-TheLaw2
     
  3. ksstathead

    ksstathead Active Member

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    Hymotion should have ample stuff in support of credit on their website? Have not looked. Also, point to the instructions to the form which would not exist if the credit at issue had expired.
     
  4. stuartestrand

    stuartestrand New Member

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    I talked to them and they don't have a document labeled Manufactorers Certificate as required in the forms. I did point to the instructions, but the examiner ruled against without substantial comment.
     
  5. sub3marathonman

    sub3marathonman Active Member

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    Ummm, on Form 8936, right at the beginning under the Note, "Claim the credit for certain alternative motor vehicles or plug in electric vehicle conversions on Form 8910. (Bold added) Hymotion is a conversion of a hybrid vehicle, not a "plug-in Electric Drive Motor Vehicle."

    I'm not sure what tax year you're working on, but the "hybrid rebate" that was mentioned would probably be covered by this story: http://www.hybridcars.com/federal-incentives.html
    It only covered the first 60,000 vehicles anyway, and was reduced along the way, and was long gone, as far as I know, by 2009.

    Please note, I'm not a tax attorney, I'm not giving tax advice, but I am saying that maybe you need to contact a QUALIFIED tax expert to get this figured out.

    Good luck.
     
  6. ksstathead

    ksstathead Active Member

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    Aren't you needing the 30B(i) credit for plug-in conversion on Form 8910 (10% of cost)? Or did you buy the vehicle after it had been converted by someone else?
     
  7. stuartestrand

    stuartestrand New Member

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    I bought the car new, complete with the conversion from Green Car Company here in Bellevue WA. Suspension mod, batter pack installed with interface and dash monitor panel.
     
  8. stuartestrand

    stuartestrand New Member

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    Nonetheless, it looks like I was wrong: my research and that of my agent now shows that the car qualified for the conversion kit 10% rebate, not for the plug in hybrid OEM car rebate :(. should have done my homework. Will file an amended return and ask for an abatement of the penalty. Caveat emptor!
     
  9. sub3marathonman

    sub3marathonman Active Member

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    Well, shouldn't the conversion kit 10% rebate still be about $1000? I believe at the end, the amount of the tax credit for a new Prius was down to about $750, although I'm not 100% sure about that. So depending on what was initially claimed, you could possibly be getting a larger rebate, and thus no penalty to ask for forgiveness from the IRS. Also, is this tax return for the 2009 tax year then? If so, and there are penalties, that may be a bit of a problem.