Plug-in electric vehicle manufacturer crosses 200,000 sold threshold; tax credit for eligible consumers begins phase down on April 1

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Plug-in electric vehicle manufacturer crosses 200,000 sold threshold; tax credit for eligible consumers begins phase down on April 1

IR-2019-57, March 26, 2019

WASHINGTON — The IRS announced today that General Motors, LLC has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the fourth quarter of 2018. This triggers a phase out of the tax credit available for purchasers of new General Motors plug-in electric vehicles beginning April 1, 2019. 

Qualifying vehicles by the manufacturer are eligible for a $7,500 credit if acquired before April 1, 2019.  Beginning April 1, 2019, the credit will be $3,750 for General Motors’ eligible vehicles. On October 1, 2019, the credit will be reduced to $1,875 for the next two quarters. After March 31, 2020, no credit will be available.

The plug-in electric drive motor vehicle credit was enacted in the Energy Improvement and Extension Act of 2008 and subsequently modified in later law.  It provides a credit for eligible passenger vehicles and light trucks.  By law, five quarters after reaching the sales threshold, the credit ends for the manufacturer.  General Motors vehicles are eligible for some portion of a credit until April 1, 2020.

Notice 2019-22 (PDF) details the phase-out.  More information on plug-in electric drive motor vehicle credit can be found on IRS.gov. The amounts of the credit for a specific vehicle can also be found at IRS.gov. 

IR-2019-57, March 26, 2019

WASHINGTON — The IRS announced today that General Motors, LLC has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the fourth quarter of 2018. This triggers a phase out of the tax credit available for purchasers of new General Motors plug-in electric vehicles beginning April 1, 2019. 

Qualifying vehicles by the manufacturer are eligible for a $7,500 credit if acquired before April 1, 2019.  Beginning April 1, 2019, the credit will be $3,750 for General Motors’ eligible vehicles. On October 1, 2019, the credit will be reduced to $1,875 for the next two quarters. After March 31, 2020, no credit will be available.

The plug-in electric drive motor vehicle credit was enacted in the Energy Improvement and Extension Act of 2008 and subsequently modified in later law.  It provides a credit for eligible passenger vehicles and light trucks.  By law, five quarters after reaching the sales threshold, the credit ends for the manufacturer.  General Motors vehicles are eligible for some portion of a credit until April 1, 2020.

Notice 2019-22 (PDF) details the phase-out.  More information on plug-in electric drive motor vehicle credit can be found on IRS.gov. The amounts of the credit for a specific vehicle can also be found at IRS.gov. 

Research & References of Plug-in electric vehicle manufacturer crosses 200,000 sold threshold; tax credit for eligible consumers begins phase down on April 1|A&C Accounting And Tax Services
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