Now is the time to buy a Low Speed Vehicle (LSV) or Neighborhood Electric Vehicle (NEV)!

The 2009 American Recovery & Reinvestment Act signed into law by President Obama on February 17, 2009, provides opportunities that will benefit many taxpayers who purchase low-speed battery-electric vehicles (LSV)!

There are many details yet to be made known, and procedures that need to be worked out by such agencies as the IRS. More information will be forthcoming; check this site frequently for updates!


Federal Income Tax Credit:
There is now a federal income tax credit for the purchase of a new LSV on or after February 17th, 2009. This tax credit is 10% of the buyer's cost with a maximum credit of $2,500. Yet to be clarified is whether or not the credit is calculated on the total invoice cost (with all options and accessories).

Although there are more details to be made known, we do know that this tax credit is now law (and is supposed to be available for LSVs purchased through December 31, 2011).


Federal Income Tax Return Deduction:
Another federal income tax return savings opportunity is the deductibility of state and local motor vehicle sales and excise taxes paid by a LSV, NEV buyer due to the purchase of a new car. This deduction would be in lieu of the federal income tax credit mentioned above (no double dipping allowed) and is effective for LSVs purchased on or after February 17, 2009 and through December 31, 2009.


Please Note:
1. Your tax advisor can help you decide what if any benefit you would receive from the tax credit or the tax deduction; and, which tax tool generates the most benefit for you.

2. Any tax benefit from the tax credit or tax deduction for a qualifying 2009 LSV, NEV purchase will not be finalized until your 2009 Federal Income Tax Return is completed (generally during 2010).