KensingtonPark
Well-Known Member
- Joined
- Jul 1, 2019
- Threads
- 21
- Messages
- 871
- Reaction score
- 685
- Location
- New York, NY
- Vehicles
- 2020 Porsche Taycan 4S; 2023 Audi eTron S Sportbck
This is correct, in that the universe of people who can use the credit is small. The people who are best positioned to really use the credit areWhile the car itself qualifies for a $7,500 tax credit in the US, I presume you are asking about the EVSE/Charger itself? If so, the answer is a complicated "maybe, but probably not". I've been driving electric for 8 years now and when I got my first EV I installed an EVSE in my garage and fully expected to be able to claim the "Alternative Fuel Vehicle Refueling Property Credit". As it turns out, I was not eligible, and I doubt many of us are. Before I go on, I should state that I am not a lawyer or a tax professional, and the tax laws have changed somewhat in the intervening years, so any or all of this may turn out to be no longer true.
The way the federal Charging credit rule is written, the credit can't reduce your tax burden lower than the independently calculated Alternate Minimum Tax. Even if you don't end up actually paying AMT, what I found (and most others found) is that this renders the credit unobtainable for many. I would think that most people who can spend Taycan money on a car are likely to be in the same boat. See the following for more details: http://aecn.timehorse.com/2011/02/ev...tive-fuel.html and https://www.irs.gov/instructions/i8911
I would love to be wrong, so if anyone has better luck please let me know!
- Stretching to buy the car relative to their AGI; OR
- Wealthy and not working for high W-2 wages (effectively sheltering and/or limiting most personal taxable income) and therefore have very low AGI
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