Federal 10% Tax Credit For Conversion!

The American Road & Recovery Act of 2009 (also known as the Stimulus bill) includes tax credits for businesses and consumers that have a plug-in conversion performed on their vehicle(s). ... SEC. 1143. CONVERSION KITS. (a) IN GENERAL.—Section 30B (relating to alternative motor vehicle credit) is amended by redesignating subsections (i) and (j) as subsections (j) and (k), respectively, and by inserting after subsection (h) the following new subsection: ‘‘(i) PLUG-IN CONVERSION CREDIT.— ‘‘(1) IN GENERAL.—For purposes of subsection (a), the plugin conversion credit determined under this subsection with respect to any motor vehicle which is converted to a qualified plug-in electric drive motor vehicle is 10 percent of so much of the cost of the converting such vehicle as does not exceed $40,000. ‘‘(2) QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE.— For purposes of this subsection, the term ‘qualified plug-in electric drive motor vehicle’ means any new qualified plugin electric drive motor vehicle (as defined in section 30D, determined without regard to whether such vehicle is made by a manufacturer or whether the original use of such vehicle commences with the taxpayer). ‘‘(3) CREDIT ALLOWED IN ADDITION TO OTHER CREDITS.— The credit allowed under this subsection shall be allowed with respect to a motor vehicle notwithstanding whether a credit has been allowed with respect to such motor vehicle under this section (other than this subsection) in any preceding taxable year. ‘‘(4) TERMINATION.—This subsection shall not apply to conversions made after December 31, 2011.’’. (b) CREDIT TREATED AS PART OF ALTERNATIVE MOTOR VEHICLE CREDIT.—Section 30B(a) is amended by striking ‘‘and’’ at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting ‘‘, and’’, and by adding at the end the following new paragraph: ‘‘(5) the plug-in conversion credit determined under subsection (i).’’. (c) NO RECAPTURE FOR VEHICLES CONVERTED TO QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.—Paragraph (8) of section 30B(h) is amended by adding at the end the following: ‘‘, except that no benefit shall be recaptured if such property ceases to be eligible for such credit by reason of conversion to a qualified plug-in electric drive motor vehicle.’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. Full information can be found on the IRS website ( http://www.irs.gov/pub/irs-pdf/i8910.pdf ). Form 8910 AND PUBLIC LAW 111–5—FEB. 17, 2009 * Please contact your accountant for advice in your situation.