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).

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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.

AND

PUBLIC LAW 111–5—FEB. 17, 2009

* Please contact your accountant for advice in your situation.