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[Richard230]

According to a short blurb from the AP in my newspaper today: "A Treasury Department inspector general report says that nearly 13,000 taxpayers erroneously claimed about $33 million in credits for plug-in electric and alternative vehicles during the first six months of 2010. The  inspector general says about 20% of the $163.9 million in credits were claimed in error. The report did  not indicate whether or not the taxpayers made the claims out of confusion or purposely took advantage of incentives for which they were not qualified."

Unfortunately, the report did not indicate what mistakes were made in taking the credit.

This is all very timely for me, as I just had my 2010 income tax return prepared today. As it turns out, my tax preparer spent as much time trying to figure out how to interpret the IRS claim instructions and trying to get the IRS computer program to properly enter the 10% credit for the purchase of my GPR-S as she did to prepare the rest of my return. Not only was the IRS form computer program not allowing her to enter the credits where it made logical sense in accordance to the instructions, but Electric Motorsport is not in the IRS database as an EV manufacturer and had to be entered under the category of "other".

She finally was able to fight the program and get the form (hopefully) filled out correctly, but I sure hope I don't get audited because I took this credit.  You would think that completing the IRS EV credit form should be simple, but it apparently is a lot more complicated than it needs to be.

[Richard230]

If you have converted an IC motorcycle to electric, you can use form 8910 to obtain a 10% tax reimbursement - but read the form instructions and qualifications thoroughly before you complete it.

The form to use for the purchase of a new plug-in motorcycle is form 8834. This credit reimburses you for 10% of the cost of your new electric motorcycle, up to a maximum of $2,500. To qualify, the motorcycle must be road legal, registered with the state and placed in service during 2010 (or your tax year), and have a battery pack of 2.5 kW or greater if the vehicle has two or three wheels. This other qualification has got me stumped: "The vehicle must also be a vehicle with 2 or 3 wheels that, according to the manufacturer, has a loaded weight of less than 14,000 pounds"!

These comments were provided by me from reading the IRS instructions for form 8834. Since I have no accounting or tax preparation experience, don't take my word for any of this information. But at least it should get you going in the right direction. Have fun filling out the form. It is really a relatively easy form to complete.

[rollandelliott]

can you get the tax credit if you buy a used EV motorcyle.
Also how about the state sales tax? is that tax deductable?