§30. Credit for qualified electric vehicles

(a) Allowance of credit

There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 10 percent of the cost of any qualified electric vehicle placed in service by the taxpayer during the taxable year.

(b) Limitations

(1) Limitation per vehicle

The amount of the credit allowed under subsection (a) for any vehicle shall not exceed $4,000.

(2) Phaseout

In the case of any qualified electric vehicle placed in service after December 31, 2005, the credit otherwise allowable under subsection (a) (determined after the application of paragraph (1)) shall be reduced by 75 percent.

(3) Application with other credits

The credit allowed by subsection (a) for any taxable year shall not exceed the excess (if any) of-

(A) the regular tax for the taxable year reduced by the sum of the credits allowable under subpart A and section 27, over-

(B) the tentative minimum tax for the taxable year.

(c) Qualified electric vehicle

For purposes of this section-

(1) In general

The term "qualified electric vehicle" means any motor vehicle-

(A) which is powered primarily by an electric motor drawing current from rechargeable batteries, fuel cells, or other portable sources of electrical current,

(B) the original use of which commences with the taxpayer, and

(C) which is acquired for use by the taxpayer and not for resale.

(2) Motor vehicle

For purposes of paragraph (1), the term "motor vehicle" means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.

(d) Special rules

(1) Basis reduction

The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (b)(3)).

(2) Recapture

The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.

(3) Property used outside United States, etc., not qualified

No credit shall be allowed under subsection (a) with respect to any property referred to in section 50(b) or with respect to the portion of the cost of any property taken into account under section 179.

(4) Election to not take credit

No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.

(e) Termination

This section shall not apply to any property placed in service after December 31, 2006.

(Added Pub. L. 102–486, title XIX, §1913(b)(1), Oct. 24, 1992, 106 Stat. 3019 ; amended Pub. L. 104–188, title I, §§1205(d)(4), 1704(j)(4)(A), Aug. 20, 1996, 110 Stat. 1776 , 1881; Pub. L. 107–147, title VI, §602(a), Mar. 9, 2002, 116 Stat. 59 ; Pub. L. 108–311, title III, §318(a), Oct. 4, 2004, 118 Stat. 1182 ; Pub. L. 109–58, title XIII, §1322(a)(3)(A), Aug. 8, 2005, 119 Stat. 1011 .)

Prior Provisions

A prior section 30 was renumbered section 41 of this title.

Amendments

2005-Subsec. (b)(3)(A). Pub. L. 109–58 substituted "section 27" for "sections 27 and 29" in introductory provisions.

2004-Subsec. (b)(2). Pub. L. 108–311 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: "In the case of any qualified electric vehicle placed in service after December 31, 2003, the credit otherwise allowable under subsection (a) (determined after the application of paragraph (1)) shall be reduced by-

"(A) 25 percent in the case of property placed in service in calendar year 2004,

"(B) 50 percent in the case of property placed in service in calendar year 2005, and

"(C) 75 percent in the case of property placed in service in calendar year 2006."

2002-Subsec. (b)(2). Pub. L. 107–147, §602(a)(1)(A), substituted "December 31, 2003," for "December 31, 2001," in introductory provisions.

Subsec. (b)(2)(A). Pub. L. 107–147, §602(a)(1)(B), substituted "2004" for "2002".

Subsec. (b)(2)(B). Pub. L. 107–147, §602(a)(1)(B), substituted "2005" for "2003".

Subsec. (b)(2)(C). Pub. L. 107–147, §602(a)(1)(B), substituted "2006" for "2004".

Subsec. (e). Pub. L. 107–147, §602(a)(2), substituted "December 31, 2006" for "December 31, 2004".

1996-Subsec. (b)(3)(A). Pub. L. 104–188, §1205(d)(4), substituted "sections 27 and 29" for "sections 27, 28, and 29".

Subsec. (d)(1). Pub. L. 104–188, §1704(j)(4)(A)(i), inserted "(determined without regard to subsection (b)(3))" before period at end.

Subsec. (d)(4). Pub. L. 104–188, §1704(j)(4)(A)(ii), added par. (4).

Effective Date of 2005 Amendment

Amendment by Pub. L. 109–58 applicable to credits determined under the Internal Revenue Code of 1986 for taxable years ending after Dec. 31, 2005, see section 1322(c)(1) of Pub. L. 109–58, set out as a note under section 45K of this title.

Effective Date of 2004 Amendment

Pub. L. 108–311, title III, §318(b), Oct. 4, 2004, 118 Stat. 1182 , provided that: "The amendments made by this section [amending this section] shall apply to property placed in service after December 31, 2003."

Effective Date of 2002 Amendment

Pub. L. 107–147, title VI, §602(c), Mar. 9, 2002, 116 Stat. 59 , provided that: "The amendments made by this section [amending this section, section 280F of this title, and provisions set out as a note under section 280F of this title] shall apply to property placed in service after December 31, 2001."

Effective Date of 1996 Amendment

Amendment by section 1205(d)(4) of Pub. L. 104–188 applicable to amounts paid or incurred in taxable years ending after June 30, 1996, see section 1205(e) of Pub. L. 104–188, set out as a note under section 45K of this title.

Effective Date

Section 1913(c) of Pub. L. 102–486 provided that: "The amendments made by this section [enacting this section and 179A of this title and amending sections 53, 55, 62, and 1016 of this title] shall apply to property placed in service after June 30, 1993."