EVSE Credit tax credit extended for 2014

[Olagon]

Just read this post http://www.greencarreports.com/news/1095984_tax-breaks-back-for-electric-car-charging-stations-natural-gas-cars-through-end-of-year.

Looks like folks that installed EVSEs this year will get a tax credit.

 

[EVA]

So this is Federal Tax credit of 30% installation / purchase costs for an EVSE for individuals? Not a state program, but federal?

Can't wait to see that credit on my taxes. Sweet.

Just asking for clarification - the credit sounds way too good to be true. I'm reminded of somebody posting here that you can take the federal tax credit ($7500) even if you lease a car - you CANNOT take that credit, you can only take that credit if you purchase a car.

 

[Washingtonian]

If you self installed can you claim credit on the fair market value of that service?

 

[hybridbear]

So this is Federal Tax credit of 30% installation / purchase costs for an EVSE for individuals? Not a state program, but federal?

Can't wait to see that credit on my taxes. Sweet.

Just asking for clarification - the credit sounds way too good to be true. I'm reminded of somebody posting here that you can take the federal tax credit ($7500) even if you lease a car - you CANNOT take that credit, you can only take that credit if you purchase a car.

Yes. Suppose you bought an EVSE for $700 and paid $2300 for electrical work on your house to have it installed. Suppose that of the $2300, $500 was to run the wires for the EVSE and hook it up and the other $1800 was to increase your service to 150 amps & install a new breaker panel, etc. You could claim the tax credit for 30% of the entire $3000 ($900) since all of that electric work was necessary to install the EVSE.

 

[WattsUp]

So this is Federal Tax credit of 30% installation / purchase costs for an EVSE for individuals? Not a state program, but federal? Can't wait to see that credit on my taxes. Sweet.

Unfortunately, if you trigger the AMT with your taxes, you likely won't see the credit. This happened to me.

 

[NightHawk]

So for an EVSE total cost of $1200 ($500 for the EVSE, $700 for 240v wiring/breaker electrician installation costs) one could get a federal tax credit of about $360?
I assume thats only good if you owe over $360 in federal taxes?
Where on the tax forms/schedules is this done?

 

[EVA]

Nighthawk, not sure which line or form - probably very close to the electric car credit entry.

The article called the credit: Alternative Refueling Tax Credit

 

[unplugged]

I assume thats only good if you owe over $360 in federal taxes?

Not entirely correct. If you paid over $360 in federal taxes you are eligible for the tax credit. Most everyone has tax taken out either through payroll deduction or estimated tax payment each quarter. You can "owe" nothing, but still get a refund as a result of the the tax credit.

Where on the tax forms/schedules is this done?

That is IRS Form 8911, Alternative Fuel Refueling Property Credit.

Turbo Tax has the form, H&R Block does not. (That's why I switched computer tax programs last year.) Of course, you can go to the IRS website and download the bare form.

 

[WattsUp]

I assume thats only good if you owe over $360 in federal taxes?

Not entirely correct. If you paid over $360 in federal taxes you are eligible for the tax credit.

I know what you're saying, but talking about money that is "owed" or "paid" is still probably not the clearest way to explain things, since the those terms can be taken to mean many things to different people.

Perhaps the most "neutral" concept to talk about, with regards to any tax credit, is tax liability.

At tax time, everyone has a tax liability, whether they have already paid all or some of it, or still owe all or some of it. Your tax liability is simply how much money, in total, the government is entitled to take from you for the tax year, based on your income and other factors.

Most people pay the majority of their tax liability throughout the year, through automatic paycheck withholding. At the end of the year, the total withheld amount is rarely exactly right, which is why most people need to pay, or are owed, the difference.

Anyway... tax credits apply to your tax liability. They lower it.

 

[hybridbear]

I assume thats only good if you owe over $360 in federal taxes?

Not entirely correct. If you paid over $360 in federal taxes you are eligible for the tax credit.

I know what you're saying, but talking about money that is "owed" or "paid" is still probably not the clearest way to explain things, since the those terms can be taken to mean many things to different people.

Perhaps the most "neutral" concept to talk about, with regards to any tax credit, is tax liability.

At tax time, everyone has a tax liability, whether they have already paid all or some of it, or still owe all or some of it. Your tax liability is simply how much money, in total, the government is entitled to take from you for the tax year, based on your income and other factors.

Most people pay the majority of their tax liability throughout the year, through automatic paycheck withholding. At the end of the year, the total withheld amount is rarely exactly right, which is why most people need to pay, or are owed, the difference.

Anyway... tax credits apply to your tax liability. They lower it.

Excellent clear & understandable explanation. Thanks Wattsup!

 

[TrojanEV]

Does the EVSE have to be bought AND installed in 2014 to qualify for the credit? I'd like to buy one before year end, but don't want to mess with the installation before year end.

 

[Olagon]

Does the EVSE have to be bought AND installed in 2014 to qualify for the credit? I'd like to buy one before year end, but don't want to mess with the installation before year end.

My understanding would be only 2014 costs would be allowed. If the credit is extended for 2015, you could likely take the installation credit next year.

I just bought a plug in version of a L2 charger and don't need electrical work so just going to deduct the cost of the EVSE.

 

[TrojanEV]

Does the EVSE have to be bought AND installed in 2014 to qualify for the credit? I'd like to buy one before year end, but don't want to mess with the installation before year end.

My understanding would be only 2014 costs would be allowed. If the credit is extended for 2015, you could likely take the installation credit next year.

I just bought a plug in version of a L2 charger and don't need electrical work so just going to deduct the cost of the EVSE.

Do you mind sharing what you bought? I too am hoping I can buy a plug-in version. Do you have a easily accessible 240v outlet you plan to use?

 

[Olagon]

Do you mind sharing what you bought? I too am hoping I can buy a plug-in version. Do you have a easily accessible 240v outlet you plan to use?

I bought this one: http://evseupgrade.com/?main_page=product_info&cPath=8&products_id=5

About 95% of the time, 120V is enough. When I need a fast charge, I just plug this EVSE into my dryer outlet. You can get up to 25 amps at 240V on this EVSE! I have mine set for 20 amps and it takes about 4.5 hours to go from empty to full.

I sold my Ford EVSE for about $250. Bought this one for $650. With my tax credit of 30% my total cost for upgrading my stock EVSE to a L1 & L2 charger was only $200 or so.

Would highly recommend the above EVSE! I also looked at TurboCord but that EVSE only charges up to 16 amps.

 

[joejoe2]

I had one installed, I only paid $850 with installation. I am wondering if I could also get a portable and get the 30% credit. I think I can justify one for at home and one on the road. I was looking at this unit http://m.homedepot.com/p/AeroVironment-TurboCord-Dual-120-240-Volt-16-Amp-Plug-In-EV-Charger-Charging-Station-23076-020/205140676/ only because I prefer Home Depot due to their return policies.

 

[hybridbear]

I am wondering if I could also get a portable and get the 30% credit.

I don't think that would work. From form 8911:

For property of a character not subject to an allowance for depreciation placed in service at your main home (personal use property), the credit for all property placed in service at your main home is generally the smaller of 30% of the property’s cost or $1,000.

Requirements from form 8911:

• To recharge an electric vehicle, but only if the recharging
property is located at the point where the vehicle is recharged.
In addition, the following requirements must be met to qualify
for the credit.
• You placed the refueling property in service during your tax
year.
• The original use of the property began with you.
• The property is not used predominantly outside the United
States.
• If the property is not business/investment use property, the
property must be installed on property used as your main home.