urgent for $7500 tax credit accountant is asking for battery size M3 midrange



any of you have similar questions ?

gmr6415 | 16/02/2019

I don't recall anything in the form or the instructions concerning battery size of a vehicle with 4 wheels.

Take a look at the requirements:

Qualified Plug-in Electric Drive Motor Vehicle

This is a new vehicle with at least four wheels that:

Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity, and
Has a gross vehicle weight of less than 14,000 pounds.

Certification and Other Requirements

Generally, you can rely on the manufacturer’s (or, in the case of a foreign manufacturer, its domestic distributor’s) certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies. The manufacturer or domestic distributor should be able to provide you with a copy of the IRS letter acknowledging the certification of the vehicle.

rdavis | 16/02/2019

62 kWh is the most common assumption.... although I don't think that is relevant to PEV and the 7500 tax credit. I think that is more for Hybrid vehicles in seeing how much of the 7500 credit you can get for the battery they use in the Hybrid.

gcklo | 16/02/2019

Got 7500 rebate twice for a Leaf and a Bolt and never answered any question about battery size

kthang | 16/02/2019

Most likely 75 kWh

chrism100 | 16/02/2019

Mid Range model is 62kWh

Bighorn | 16/02/2019

It’s well over the required threshold to qualify which I “think” is in the 20s. 60 should suffice.

Bighorn | 16/02/2019

Or it might be 17:
“For electric vehicles purchased after December 31, 2009, you get a credit for at least $2,500. The tax credit can increase up to $7,500 depending on a few qualifiers:

the kilowatt capacity
how many vehicles the manufacturer sold.
You receive an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours.”

Hal Fisher | 16/02/2019

I think minimum to get full credit is 10kwh.

Bighorn | 16/02/2019

$2500 + $5000/$417/kWh= ~17kWh gets you the full credit.

billlake2000 | 16/02/2019

Your accountant has qualities similar to an asshat.

terminator9 | 16/02/2019

Turbotax asked for it too. I don't think it goes in the form but the software uses it to determine if you are eligible or not as you need 5kWh minimum I think.

Teslanene | 16/02/2019

Taxact only aks for VIN, model and year.

Bighorn | 16/02/2019

The IRS doesn’t ask for it.

Rajkrishnan9 | 17/02/2019

Thnx all v much she said the software is asking
Told her to double check but fave 62kwh

jimglas | 17/02/2019

Get a new accountant

jpelura3 | 17/02/2019

Turbo Tax asked for it. Perhaps your accountant is using TT. I have a long range, I entered 75KW. I"m pretty sure I used a search engine to find out.

gballant4570 | 17/02/2019

Its on some tax forms - might be associated with a state tax credit/rebate. I had to put a number on my Maryland tax rebate form. It also had to be signed by someone at the Tesla store. I had put 75kwh on the form, and the Tesla guy signed it. My car is a LR model.

As mentioned above, many of these programs have a minimum battery size intended to weed out hybrids that aren't really hybrids.

gballant4570 | 17/02/2019

BTW, OP, any number over 20 kwh will do. No real accuracy needed, just get over the minimum - you won't be lying.

morrisje2 | 17/02/2019

H&R Block tax software doesn't ask for it. IRS Form 8936 Doesn't ask for it.

rdavis | 17/02/2019

Morrisje2, the form Doesn’t specifically asked for it however line for a relies on a calculation from tax code 30D which does.

“Qualified Plug-In Electric Drive Motor Vehicles (IRC 30D)

Internal Revenue Code Section 30D provides a credit for Qualified Plug-in Electric Drive Motor Vehicles including passenger vehicles and light trucks. For vehicles acquired after 12/31/2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500.

The credit begins to phase out for a manufacturer’s vehicles when at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009). For additional information see Notice 2009-89.

Manufacturers of the vehicles listed below have provided appropriate information and have received from the Service acknowledgement of the vehicles eligibility for the credit and the amount of the qualifying credit. The list of qualified vehicles provided below applies only to vehicles acquired after December 31, 2009.”

rdavis | 17/02/2019


Line 4a relies on it.

Bighorn | 17/02/2019

I posted that code above, but it’s not required of the tax payer to calculate their taxes, which is why folks are scratching their heads over the accountant’s unnecessary request.

rdavis | 17/02/2019

@Bighorn, actually, it is required since the Tesla MidRange isn't among the listed cars on the IRC site that gives the value. The LR is, but not the MR, so you have to know the battery size to calculate... Now, we know that the Tesla easily qualifies for the full amount; however an accountant may not.

If asked, just tell them 62 kwh battery and move on.

Bighorn | 17/02/2019

Got it. Thanks.

stevenmaifert | 17/02/2019

Kudos to the account for actually reading the IRS rules for the EV tax credit qualification. As others have pointed out, per IRS policy, you can rely on the manufacturers certification and don't need the actual kWh capacity of the battery.