Todd's Tax Service LLC

Todd's Tax Service LLC

It's hard not to notice that electric cars are the wave of the future. It's possible that purchasing a new electric car or a new hybrid vehicle could come with a federal tax credit.

The tax credit system for vehicles is extremely confusing. Vehicle manufactures have a limited number of vehicles that can be sold and qualify for the tax credit. Only certain vehicles qualify for the credit. The credit can be substantial if the vehicle qualifies. But so can the price of the vehicle be substantial.

I do NOT tell you if your vehicle will qualify for a tax credit. You must obtain that information in writing from the dealer. The credit is nonrefundable, meaning that it can be used to reduce your federal tax. Any unused credit can be carried forward to the next year.

With so many auto manufacturers getting on board with "all electric", it's hard not to jump on the bandwagon. Unfortunately, filling America's highways with electric vehicles is not going to solve our problems with environment and climate. Producing an electric car uses a lot of energy and natural resources. And no one really knows how plugging in millions of electric cars into our electric grid will impact our energy supply.

The biggest problem with electric cars is the batteries. Remember when you were a kid and your toy car stopped working? When you removed the battery cover on the back of the car, what did you find? Corrosion!

(I have no idea if life size cars will have this problem). I recently read a story about a guy in Europe who bought one of the first Teslas. Time came to replace the batteries and he was quoted $22,600 to replace the batteries.  Click on the link to see what happened.

Tesla Owner Blows up Tesla Model S

Link to IRS site regarding vehicle credits

All information on the IRS site (link above) should be double checked with the dealer and the IRS. The site may or may not reflect current information.

Solar Powered Cars are coming.

Electric Cars and Tax Credits