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The IRS has officially announced the tax credits that could benefit purchasers of

qualified plug-in electric vehicles. According to the IRS website and public and public notice

2009-54 the Emergency Economic Stability Act of 2009 (EESA) Credit guidelines

for manufacturers has been approved for Qualified LSV’s and has now been made

available for review and application submittal. ACG has sent in all the necessary applications

and documentation for IRS approval.  According to the IRS Notice 2009-54 the

LSV/NEV must be manufactured primarily for use on public streets with a posted

speed limit of no more than 35mph. They must have 4 wheels, weigh less than 3000lbs

when fully loaded, maintain a minimum of 20mph and maximum of 25mph and draw its

power from rechargeable batteries. A modified golf cart does not meet this guideline as

it was not first built primarily for use on public streets. In order for a LSV/NEV to be

50 state legal and qualify for the tax credit in every state, the manufacturer must have an

Executive Order from the California Air Resources Board. If not, the dealer may face

fines of up to $5000– per vehicle sold from CARB and an additional $1000 fine from the

IRS for aiding a false return.  The credit is calculated based on kilowatt

hour rating of the battery capacity used in ACG LSV/NEV models. The baseline credit

is a minimum of $2500 for a 4-kilowatt hour battery capacity plus an additional $417 for

each kilowatt hour above 4 kilowatt hours.  For ACG extended range vehicles the calculation

is : 8 x 6V x 225AH = 10.8 kwh  For normal configuration vehicles the calculation

is: 6 x 8V x 170AH = 8.16 kwh  ACG Extended range vehicles qualify for up

to the maximum $5300 tax credit. Standard Range may qualify for up to $4234.

The most current for available is form 8834.  They have yet published form 8836, which is

the Qualified Plug-in Electric Drive Motor Credit. You can visit the forms sections of

the IRS website to download and print the 8834 form now. Check the website regularly

for form 8836. The link to form 8834 is http://www.irs.gov/pub/irs-pdf/f8834.pdf

The EESA credit can be claimed for qualified LSV/NEV’s that have been put into service

after Feb. 19, 2009 and after Dec. 31, 2009.  This credit is exactly the opportunity that

we have all been waiting for. Let’s go out there and make some sales and close out

the year strong!  As with all tax matters, please insist that your customers contact their tax

adviser to determine qualifications for any credits as individual circumstances may vary.

If you have any questions call the ACG office at 909-597-2885 and we will answer all

questions to the best of our understanding.