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Expense auto mileage and full EV tax credit

If I expense my auto use mileage to my employer can I take the full EV tax credit?

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3 Replies
VictoriaD75
Expert Alumni

Expense auto mileage and full EV tax credit

There is no limitation on mileage reimbursement for claiming the credit for the purchase of an electric vehicle.

 

Taxpayers are allowed a credit for the purchase of plug-in electric drive vehicles used for either business or personal purposes. The credit, which ranges between $2,500 and $7,500 for light-duty vehicles, varies depending on the weight of the vehicle and kilowatt hour of battery capacity. 

 

The credit phases out for each car manufacturer when they reach a total of 200,000 electric cars sold for use in the United States.

 

To determine if you are eligible, click on Deductions & Credits under the Federal menu. Under Cars and Other Things You Own, choose Start/Revisit next to Energy-Efficient Vehicles. This credit is reported on Form 8936.

 

Plug-In Electric Drive Vehicle Credit

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Expense auto mileage and full EV tax credit

Thanks.  One point of clarification, is the IRS 8936, Part II Business/Investment section to be used only by an actual “business” only?Or, would an employee with a personally owned EV record their percentage of use for work (while serving their employer regardless if the mileage is a reimbursed employee expense) be recorded in this Part II as a part of personal return by the employee?

VictoriaD75
Expert Alumni

Expense auto mileage and full EV tax credit

Part II would be the business use of the vehicle. If you are an employee and not the owner of the business, you cannot take the percentage of use for work. This would be a business owned or personal vehicle used by the business owner for business purposes. Employees of the business are not eligible.

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