Code Section 30D
| Code Section | Effective Date | Name of Act | Name of Provision | 10yr Revenue Estimate ($millions) |
|---|---|---|---|---|
| 30D | 12/31/2011 | The American Taxpayer Relief Act of 2012 | Credit for electric motorcycles and three-wheeled vehicles | -7 |
| 30, 30B, and 30D | *See Note Below | The American Recovery and Reinvestment Act of 2009 (Public Law 111-5) | Modification of the plug-in electric drive motor vehicle credit | -2,002 |
* Notes on Effective Date
The new 10-percent credit for low-speed vehicles, motorcycles, and three-wheeled vehicles is effective for vehicles acquired after February 17, 2009. The credit for converting a vehicle into a plugin electric drive motor vehicle is effective for property placed in service after February 17, 2009. The modification of the plug-in electric drive motor vehicle credit is effective for vehicles acquired after December 31, 2009. The allowance of the treatment of the alternative motor vehicle credit against the alternative minimum tax is effective for taxable years beginning after December 31, 2008.
Credit for electric motorcycles and three-wheeled vehicles
Explanation of Provision
The provision combines the credit for electric motorcycles and three-wheeled vehicles (but not low-speed vehicles) with the section 30D credit for plug-in electric drive motor vehicles. The new credit provides the same incentives as the existing credit and expires for vehicles acquired on or before December 31, 2013.
Modification of the plug-in electric drive motor vehicle credit
Explanation of Provision
Credit for electric drive low-speed vehicles, motorcycles, and three-wheeled vehicles
The provision creates a new 10-percent credit for low-speed vehicles, motorcycles, and three-wheeled vehicles that would otherwise meet the criteria of a qualified plug-in electric drive motor vehicle but for the fact that they are low-speed vehicles or do not have at least four wheels. The maximum credit for such vehicles is $2,500. Basis reduction and other rules similar to those found in section 30 apply under the provision. In the case of vehicles of a character subject to an allowance for depreciation, the new credit is part of the general business credit. The new credit is not available for vehicles sold after December 31, 2011.
Credit for converting a vehicle into a plug-in electric drive motor vehicle
The provision also creates a new 10-percent credit, up to $4,000, for the cost of converting any motor vehicle into a qualified plugin electric drive motor vehicle. To be eligible for the credit, a qualified plug-in traction battery module must have a capacity of at least four kilowatt-hours. The credit is not available for conversions made after December 31, 2011.
Modification of the plug-in electric drive motor vehicle credit
The provision modifies the plug-in electric drive motor vehicle credit by limiting the maximum credit to $7,500 regardless of vehicle weight. The provision also eliminates the credit for low speed plug-in vehicles and for plug-in vehicles weighing 14,000 pounds or more.
The provision replaces the 250,000 total plug-in vehicle limitation with a 200,000 plug-in vehicles per manufacturer limitation. The credit phases out over four calendar quarters beginning in the second calendar quarter following the quarter in which the manufacturer limit is reached.
Treatment of alternative motor vehicle credit as a personal credit allowed against the alternative minimum tax
The provision provides that the alternative motor vehicle credit for nondepreciable property is a personal credit allowed against the alternative minimum tax.
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