View Full Version : IRS EV tax credit problems

04 February 2011, 1611
According to a short blurb from the AP in my newspaper today: "A Treasury Department inspector general report says that nearly 13,000 taxpayers erroneously claimed about $33 million in credits for plug-in electric and alternative vehicles during the first six months of 2010. The inspector general says about 20% of the $163.9 million in credits were claimed in error. The report did not indicate whether or not the taxpayers made the claims out of confusion or purposely took advantage of incentives for which they were not qualified."

Unfortunately, the report did not indicate what mistakes were made in taking the credit.

This is all very timely for me, as I just had my 2010 income tax return prepared today. As it turns out, my tax preparer spent as much time trying to figure out how to interpret the IRS claim instructions and trying to get the IRS computer program to properly enter the 10% credit for the purchase of my GPR-S as she did to prepare the rest of my return. Not only was the IRS form computer program not allowing her to enter the credits where it made logical sense in accordance to the instructions, but Electric Motorsport is not in the IRS database as an EV manufacturer and had to be entered under the category of "other".

She finally was able to fight the program and get the form (hopefully) filled out correctly, but I sure hope I don't get audited because I took this credit. Completing the IRS EV credit form should be simple, but it apparently is a lot more complicated than it needs to be.

04 February 2011, 1715
TurboTax handled mine without problems last year, altmost trivial.

04 February 2011, 1749
Yeah, I saw that.... People with Excursions and Hummers were taking it, even people incarcerated.

I'm a little concerned because I might have some trouble finding my receipts :)

05 February 2011, 0630
Can the credit be applied to conversions, or only new EV purchases.

05 February 2011, 1441
I don't know if this is going to help anyone or not, but here is how my low-cost "tax preparer" (not an accountant) filled out my IRS form 8910 "Alternative Motor Vehicle Credit" claim form.;

Part 1 "Tentative Credit", Line 1: 2010 GPR-S Electric Motor Sport (a slight error in the company name). Line 2", date vehicle placed in service: 01/01/2010 (a slight error there too - the date should have been 01/10/2010). Line 8, "maximum plug-in conversion credit amount allowable": $4000 (conversion?) Line 10, "Tentative credit": $880.

Part II "Credit for Business/Investment Use Part of Vehicle": 0%

Part 111, "Credit for Personal Use Part of Vehicle", Line 16: $880. Line 17: $880. Line 21: $880 (enter on Line 53 of Form 1040)

Now this was a "slam bang thank you ma'am" return. I signed the form without even seeing my return and it got prepared and mailed off within 4 hours. I got my copy dropped off during the late afternoon, so I didn't get a chance to comment on my return before it hit the mail. Still, the credit form was filled out better than the one last year and I haven't been called on the carpet that one - yet.

08 February 2011, 1940
Well as it turns out, my tax preparer used the wrong IRS form for the credit for the purchase of a factory-built DOT plug-in vehicle. The form 8910 mentioned above is for the conversion of a IC vehicle to electric. The form to use for the purchase of a new plug-in motorcycle is form 8834. This credit reimburses you for 10% of the cost of your new electric motorcycle, up to a maximum of $2,500. To qualify, the motorcycle must be road legal, registered with the state and placed in service during 2010 (or your tax year), and have a battery pack of 2.5 kW or greater if the vehicle has two or three wheels. This other qualification has got me stumped: "The vehicle must also be a vehicle with 2 or 3 wheels that, according to the manufacturer, has a loaded weight of less than 14,000 pounds".

These comments were provided by me from reading the IRS instructions for form 8834. Since I have no accounting or tax preparation experience, don't take my word for any of this information. But at least it should get you going in the right direction. Have fun filling out the form. It is really a relatively easy form to complete.

08 February 2011, 2050
EV manufacturers need to be certified through the EPA to have their vehicles listed by the IRS as eligible for the Federal Tax credits. I believe Zero, Brammo and Roehr have, or are in the process of completing these certifications.

09 February 2011, 0117
Richard - I used form 8834 for the purchase of my GPR-S a couple years ago. Forgot about that and had to dig it up... tax time :-/

09 February 2011, 0848
EV manufacturers need to be certified through the EPA to have their vehicles listed by the IRS as eligible for the Federal Tax credits. I believe Zero, Brammo and Roehr have, or are in the process of completing these certifications.

If EV manufacturers have to be certified with the EPA and that requires the manufacturer actually do something, that does not give me a good feeling that my credit for the EMS GPR-S will be approved by the IRS. EMS used to be pretty good with paperwork a couple of years ago when the 2008 models first came out but I think they have lost interest in the whole let's manufacture an electric motorcycle for fun thing. They seem to have gone back to selling parts and kits, based upon their lack of advertising or promotion of their EMS/Native vehicles.

Maybe Harlan knows if the EMS/Native DOT production bikes are IRS certified and if they are still being produced as DOT-approved, factory-assembled, street vehicles.