In addition to the ecological benefits of a “plug-in” vehicle, the buyer of such a vehicle also may benefit from a generous tax credit. The credit, which is claimed on Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit, is equal to the sum of $2,500 for a vehicle that draws propulsion energy from a battery with not less than 5 kwh of capacity plus $417 for each kwh of capacity in excess of 5 kwh, not to exceed $5,000 (yielding a maximum credit of $7,500).

To qualify, the following must be met:

 The motor vehicle with at least 4 wheels must be manufactured primarily for use on public roads.

 The vehicle is treated as a motor vehicle for purposes of Title II of the Clean Air Act.

 The vehicle has a gross weight rating of less than 14,000 pounds.

 The vehicle is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of at least 4 kwh and is capable of being recharged from an external source.

 The vehicle is used predominantly in the US.

 The taxpayer is the original user of the vehicle and must have acquired it for use or lease and not for resale.

The credit begins to phase out for a manufacturer’s vehicles when at least 200,000 have been sold for use in the US.