22 Oct 2021 IRS Adds Vehicles to Section 30D Qualified Electric Vehicle List
Authored by RSM US LLP |
The IRS added 12 new 2022 model year plug-in electric drive motor vehicles to the list of qualified vehicles eligible for the section 30D tax credit. The new vehicles eligible for the credit include vehicles manufactured by Ford, Hyundai, Kandi, Kia, Mitsubishi and Rivian.
Section 30D allows for a credit for qualified plug-in electric motor vehicles for the taxable year in which it is placed in service. The maximum amount of the credit allowed for a vehicle is $7,500, and the credit amount varies based on the capacity of the battery used to power the vehicle. The section 30D credit starts to phase out beginning the second calendar quarter after the manufacturer has sold for use 200,000 vehicles in the United States.
The table below shows the credit amount for the newly added vehicles.
Manufacturer | New 2022 Qualifying Models | Credit Amount |
Ford | Escape Plug-In Hybrid | $6,843 |
Hyundai | Ioniq Plug-In Hybrid Electric Vehicle | $4,543 |
Tucson Plug-In Hybrid | $6,587 | |
Santa Fe Plug-In Hybrid | $6,587 | |
Kandi | K23 | $7,500 |
K27 | $7,500 | |
Kia | Niro Plug-In Hybrid | $4,543 |
Niro EV | $7,500 | |
EV 6 (58 khw, 77.4 khw) | $7,500 | |
Sorento Plug-In Hybrid | $6,587 | |
Mitsubishi | Outlander PHEV | $6,587 |
Rivian | R1T | $7,500 |
For a full list of eligible vehicles, refer to Qualified Plug-In Electric Drive Motor Vehicles (IRC 30D).
Taxpayers who have questions on how these credits apply and other rules for claiming the credit should consult their tax advisers.
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This article was written by Debbie Gordon, George Lee and originally appeared on 2021-10-22.
2021 RSM US LLP. All rights reserved.
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