Electric engine

[Yamayor]

We want to convert our 2007 Volkswagen Beetle and our 1992 Volkswagen Beetle to eectric by buying them an electric engine kit, do they qualify for the 30% tax credit?

[KochuK · Accepted solution]

Hi Yamayor, thanks for the event question.

Inflation Reduction Act of 2022 (IRA 2022) signed into law on 8/16/2022. Hence terms used here are “Pre-IRA 2022” and “Post-IRA 2022.”

The IRA 2022 provisions on individual taxpayer EV credits are Internal Revenue Code 30D for "Clean Vehicle Credit" and Code 25E for "Previously-Owned Clean Vehicles Credit."

In general, both codes refer a sale of motor vehicle by a qualified dealer/car dealership to an individual buyer. There are specific rules and  reporting requirement. I do not see any provision regarding home conversion by using an electric engine kit to a currently owned gas car.

Thank you and hope the above helps.