Can a tax credit for electric plug-in vehicles be taken in a subsequent year of ownership?
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Can a tax credit for electric plug-in vehicles be taken in a subsequent year of ownership?

 
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Can a tax credit for electric plug-in vehicles be taken in a subsequent year of ownership?

No, generally, it is taken in the year you purchase the vehicle. You may be able to amend your income tax return to take advantage of the electric plug-in vehicle credit.

See How to amend (change or correct) a return you already filed

Federal Tax Credits for All-Electric and Plug-in Hybrid Vehicles: Federal Tax Credit Up To $7,500: All-electric and plug-in hybrid cars purchased in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The credit amount will vary based on the capacity of the battery used to power the vehicle. State and/or local incentives may also apply. See https://www.fueleconomy.gov/feg/taxevb.shtml 

  • 2012–15 Toyota Prius Plug-in Hybrid  $2,500
  • 2017 Toyota Prius Prime Plug-in Hybrid $4,502
  • This credit does not apply to pre-owned or used vehicles.

The Plug-in Electric Drive Motor Vehicle Credit is reported on Form 8936, the Plug-In Electric Drive Motor Vehicle Credit applies to certain manufactured electric or plug-in hybrid electric vehicles which draw electricity from a battery recharged from an external source of electricity. The credit ranges from $2,500 to $7,500 depending on battery capacity and weight.

 

TurboTax will ask about your electric vehicle and help you with this credit. 

To enter your Plug-in Electric Drive Motor Vehicle Credit:

  • Log on to TurboTax and click on the orange button, Take Me To My Return.
  • Click on the Federal Income tab (Personal Tab in the Self-employed version).
  • Click on Deductions & Credits.
  • On the Your 2016 Deductions & Credits screen, scroll down to Cars and Other Things You Own.
  • Click Start/Edit/Update next to Energy-Efficient Vehicles.
  • Continue with the onscreen interview until complete.

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