Tax Breaks Available for Taxpayers Who Purchase Qualified Plug-In Electric Vehicles
WASHINGTON — Plug-in electric vehicles using certain types of batteries may qualify for a new tax credit if purchased this year, the Internal Revenue Service said today.
The Emergency Economic Stabilization Act of 2008 (EESA) and the American Recovery and Reinvestment Act of 2009 (ARRA) created two new tax credits for various types of electric vehicles, which may include what are commonly referred to as neighborhood electric vehicles.
ARRA creates a tax credit for low-speed or two- or three-wheel electric vehicles, such as motor scooters, purchased after Feb. 17, 2009, and before Jan. 1, 2012. The amount of the credit is 10 percent of the cost of the vehicle, up to a maximum credit of $2,500. To qualify, a vehicle must be either a low-speed vehicle that is propelled to a significant extent by a rechargeable battery with a capacity of at least 4 kilowatt hours or be a two- or three-wheeled vehicle that is propelled to a significant extent by a rechargeable battery with a capacity of at least 2.5 kilowatt hours.
EESA created a tax credit for vehicles that have at least four wheels and draw propulsion using a rechargeable traction battery with at least four kilowatt hours of capacity. For 2009, the minimum credit is $2,500 and the credit tops out at $7,500 to $15,000, depending on the weight of the vehicle and the capacity of the battery.
During 2009, low-speed, four-wheeled vehicles manufactured primarily for use on public streets, roads and highways (neighborhood electric vehicles) may qualify both for the EESA credit and, if purchased after February 17, 2009, for the ARRA credit for low-speed electric vehicles. A taxpayer may not claim both credits for the same vehicle. Vehicles manufactured primarily for off-road use, such as for use on a golf course, do not qualify for either credit.
The Internal Revenue Service is working on guidance regarding certification procedures for both of these credits.
The Internal Revenue Service is working on guidance regarding certification procedures for both of these credits.
Form 990 Redesigned After 30 Years
The IRS is reminding tax-exempt organization and their tax preparers, that “for the first time in 30 years, the IRS has redesigned the Form 990.”
Below is a checklist provided by the IRS to help with the preparation of the new form 990.
√ Determine whether you are eligible to file the Form 990-EZ for 2008
√ Review the redesigned 2008 Form 990 released in December 2008
√ Review the final instructions released in December 2008
√ Identify the schedules that you need to complete
√ Identify the key internal stakeholders to involve to complete the form, including finance, program leaders, fundraisers, PR/government relations, and HR
√ Assign an internal leader to coordinate 990 preparation
√ Identify your related organizations and ODTKEs (officers, directors, trustees, key employees)
√ Be prepared to answer new questions about governance, executive compensation, and insider transactions
√ Determine your overseas and joint venture activities
√ Establish or modify internal systems to prepare for filing season
A detailed explanation of the changes between the 2007 and 2008 forms is also available.
