IRC 30D(a) offers a credit to the buyer of an eligible plug-in electric drive motor vehicle. According to the IRS website, the additional models of Audi, MINI and Toyota Prius now qualify for the plug-in electric drive motor vehicle tax credit. The amount of the credit is $2,500 for allowed vehicles purchased after December 31, 2009, in addition to an amount that does not surpass $5,000 regarding battery capacity. The credit is reported on Form 8936 of the induvial tax return, known as the Qualified Plug-in Electric Drive Motor Vehicle Credit.
The highest eligible tax credit amount is $7,500. However, the tax credit gradually lessens over six quarters that starts when a manufacturer has sold 200,000 vehicles minimum of that qualified vehicle in the U.S. To find out more about the full credit amount and the phase out period, visit the official U.S. government source for fuel economy information.
The specific models regarding the new additions of the Audi, MINI, and Toyota Prius and their maximum eligible credit amounts are as follows.
- 2020 Audi e-tron Sportback ($7,500)
- 2020 Audi A8L OHEV & AudiQ5 PHEV ($6,712)
- 2020 MINI Cooper S E Hardtop 2 door & MINI Cooper S E Hardtop ($7,500)
- 2020-2021 MINI Cooper S E Countryman ALL4s ($5,002)
- 2021 Toyota RAV4 Prime Plug-in Hybrid ($7,500)
- 2020-2021 Prius Prime Plug-in Hybrid ($4,502)
For more information, visit the IRS website. (See link attached above).