To be eligible for the tax credit, a vehicle must meet
the following requirements:
- It must be powered primarily by an electric motor drawing
current from rechargeable batteries, fuel cells, or other
portable sources of electrical current.
- It must have at least four wheels and be manufactured
primarily for use on public streets, roads, and highways
(vehicles exclusively used on rail or rails do not qualify).
- It must meet all federal and state emissions requirements.
- It has never been used as a nonelectric vehicle.
- You must purchase the vehicle new and for your own use,
not for resale
- You must drive it mostly in the United States.
- Government agencies, tax exempt organizations, and foreign
entities are not eligible.
If any of these conditions change within 3 years of purchase,
you may have to return some of the money saved by the deduction. |
To claim the tax credit, you must fill out and attach
Form
8834: Qualified Electric Vehicle Credit to your tax return.
![Form 8834: Qualified Electric Vehicle Credit](images/form8834.gif)
You can claim the credit by entering the amount from line
20 of Form 8834 on line 55 of Form
1040. You should check box “c” and specify
Form 8834.
![Sample entry in 1040 form (2004)](images/form1040_8834.gif)
Partnerships and corporations have different filing requirements.
If you bought your vehicle in a previous tax year, you must
fill out an amended tax return Form
1040X for that year. |
Some state and local governments also provide incentives
for AFVs. Check with your state or local government or view
the U.S. Department of Energy's list of State
& Federal Incentives & Laws. |