The IRS has added Hyundai Motor America’s 2020 IONIQ Plug-in Hybrid and 2020 Kona Electric to the list of vehicles, on its website, that are eligible for the plug-in electric drive motor vehicle credit.
Internal Revenue Code (IRC) Section 30D(a) provides a credit to the purchaser of a qualified plug-in electric drive motor vehicle including passenger vehicles and light trucks (“qualifying vehicles”). For qualifying vehicles acquired after December 31, 2009, the tax credit is equal to $2,500 plus an additional amount, based on battery capacity, that cannot exceed $5,000. This credit phases out over six quarters (“phase-out period”) beginning when a manufacturer has sold at least 200,000 qualifying vehicles for use in the U.S. (determined on a cumulative basis for sales after December 31, 2009). The IRS provides a list of qualifying vehicles on its website at https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit.
Taxpayers purchasing one of the vehicles on the qualifying vehicle list can claim the tax credit using Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two- or Three-Wheeled Plug-in Electric Vehicles).
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