26 USC 30 - Credit for qualified electric vehicles

(a) Allowance of credit 
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 10 percent of the cost of any qualified electric vehicle placed in service by the taxpayer during the taxable year.
(b) Limitations 

(1) Limitation per vehicle 
The amount of the credit allowed under subsection (a) for any vehicle shall not exceed $4,000.
(2) Phaseout 
In the case of any qualified electric vehicle placed in service after December 31, 2005, the credit otherwise allowable under subsection (a) (determined after the application of paragraph (1)) shall be reduced by 75 percent.

Advertisement
view counter
(3) Application with other credits 
The credit allowed by subsection (a) for any taxable year shall not exceed the excess (if any) of
(A) the regular tax for the taxable year reduced by the sum of the credits allowable under subpart A and section 27, over
(B) the tentative minimum tax for the taxable year.
(c) Qualified electric vehicle 
For purposes of this section
(1) In general 
The term qualified electric vehicle means any motor vehicle
(A) which is powered primarily by an electric motor drawing current from rechargeable batteries, fuel cells, or other portable sources of electrical current,
(B) the original use of which commences with the taxpayer, and
(C) which is acquired for use by the taxpayer and not for resale.
(2) Motor vehicle 
For purposes of paragraph (1), the term motor vehicle means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.
(d) Special rules 


Advertisement
view counter
(1) Basis reduction 
The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (b)(3)).
(2) Recapture 
The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.
(3) Property used outside United States, etc., not qualified 
No credit shall be allowed under subsection (a) with respect to any property referred to in section 50 (b) or with respect to the portion of the cost of any property taken into account under section 179.
(4) Election to not take credit 
No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.
(e) Termination 
This section shall not apply to any property placed in service after December 31, 2006.