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Discussion Starter · #1 ·
I've been lurking for a couple years now studying up and planning and I think
it's time to come out of the closet. I'll likely begin my first conversion
this year. I've searched the archives and spent a fair amount of time
looking through a number of other webpages trying to find this info but I
suspect many of you will know the answer right off the top of your head.

I live in California. I'm going to convert an early sixties bug.

Are the tax incentives (Federal or State) or rebates still in effect?

>From what I can gather about the most I could hope for was a Tax Credit of
10% of the conversion cost, but some of the links seem to be gone now and
I'm wondering if even that has gone away?

Just as an editorial note: I'm sure all of you feel the same way--it's
irritating that there's a $7,500(Fed) AND a $5,000(State) incentive on new
ZEV and yet almost nothing for a conversion? Seems to me that the folks
that are doing conversions are doing double duty by not only creating a new
ZEV, but also removing an old, polluting vehicle from the road!

Thanks for your help!

Sam

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Discussion Starter · #2 ·
Hello Sam,

The IRS form you want is Form 8910 which is the Alternate Motor Vehicle
Credit. You can down load at the IRS Forms site. Be sure to down load the
Instruction for the Form 8910.

This form is not only for new vehicles which use other types of fuel
systems, but also for plug-in conversions.

If you are using a tax computer program that is generate by any tax
services, this Form 8910 will be listed in that program for you to select.
All you have to do is input the cost of conversion and it will fill out the
form for you.

Roland


----- Original Message -----
From: "SamGIII" <[email protected]>
To: <[email protected]>
Sent: Friday, February 04, 2011 9:42 AM
Subject: [EVDL] Tax and rebate incentives


>
> I've been lurking for a couple years now studying up and planning and I
> think
> it's time to come out of the closet. I'll likely begin my first
> conversion
> this year. I've searched the archives and spent a fair amount of time
> looking through a number of other webpages trying to find this info but I
> suspect many of you will know the answer right off the top of your head.
>
> I live in California. I'm going to convert an early sixties bug.
>
> Are the tax incentives (Federal or State) or rebates still in effect?
>
> >From what I can gather about the most I could hope for was a Tax Credit
> >of
> 10% of the conversion cost, but some of the links seem to be gone now and
> I'm wondering if even that has gone away?
>
> Just as an editorial note: I'm sure all of you feel the same way--it's
> irritating that there's a $7,500(Fed) AND a $5,000(State) incentive on new
> ZEV and yet almost nothing for a conversion? Seems to me that the folks
> that are doing conversions are doing double duty by not only creating a
> new
> ZEV, but also removing an old, polluting vehicle from the road!
>
> Thanks for your help!
>
> Sam
>
> --
> View this message in context:
> http://electric-vehicle-discussion-list.413529.n4.nabble.com/Tax-and-rebate-incentives-tp3260622p3260622.html
> Sent from the Electric Vehicle Discussion List mailing list archive at
> Nabble.com.
>
> _______________________________________________
> | REPLYING: address your message to [email protected] only.
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>

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Discussion Starter · #3 ·
Thanks Roland!

It's interesting that "cost of conversion" is left pretty wide open. I
suppose like most things with taxes you'd want to have good records to back
your numbers up, but my first thought is that could include a whole host of
costs including things like shipping for components, shop rental (for those
who'd need it), bodywork that's required for the modification, etc.

Has anyone encountered any clear guidelines as to what could be included as
a "cost of conversion" and what could not be included?
--
View this message in context: http://electric-vehicle-discussion-list.413529.n4.nabble.com/Tax-and-rebate-incentives-tp3260622p3260980.html
Sent from the Electric Vehicle Discussion List mailing list archive at Nabble.com.

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Discussion Starter · #4 ·
It doesn't go into any detail in the instructions for the form?

SamGIII <[email protected]> wrote:

>
> Thanks Roland!
>
> It's interesting that "cost of conversion" is left pretty wide open. I
> suppose like most things with taxes you'd want to have good records to back
> your numbers up, but my first thought is that could include a whole host of
> costs including things like shipping for components, shop rental (for those
> who'd need it), bodywork that's required for the modification, etc.
>
> Has anyone encountered any clear guidelines as to what could be included as
> a "cost of conversion" and what could not be included?
> --
> View this message in context:
> http://electric-vehicle-discussion-list.413529.n4.nabble.com/Tax-and-rebate-incentives-tp3260622p3260980.html
> Sent from the Electric Vehicle Discussion List mailing list archive at
> Nabble.com.
>
> _______________________________________________
> | REPLYING: address your message to [email protected] only.
> | Multiple-address or CCed messages may be rejected.
> | UNSUBSCRIBE: http://www.evdl.org/help/index.html#usub
> | OTHER HELP: http://evdl.org/help/
> | OPTIONS: http://lists.sjsu.edu/mailman/listinfo/ev
>
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Discussion Starter · #5 ·
Plug-In Hybrid Conversion Kits
The Recovery Act also provided a tax credit for plug-in electric drive =

conversion kits. The credit is equal to 10% of the cost of converting a veh=
icle =

to a qualified plug-in electric drive motor vehicle and placed in service a=
fter =

Feb. 17, 2009. The maximum amount of the credit is $4,000. The credit does =
not =

apply to conversions made after Dec. 31, 2011. A taxpayer may claim this cr=
edit =

even if the taxpayer claimed a hybrid vehicle credit for the same vehicle i=
n an =

earlier year.
Please see the IRS website for more information on Alternative Motor Vehicl=
e =

Credits.

IRS website

Conversion Kits (Section 1143): The new law also provided a tax credit for =

plug-in electric drive conversion kits. The credit is equal to 10 percent o=
f the =

cost of converting a vehicle to a qualified plug-in electric drive motor ve=
hicle =

and placed in service after Feb. 17, 2009. The maximum amount of the credit=
is =

$4,000. The credit does not apply to conversions made after Dec. 31, 2011. =
A =

taxpayer may claim this credit even if the taxpayer claimed a hybrid vehicl=
e =

credit for the same vehicle in an earlier year.
Treatment of Alternative Motor Vehicle Credit as a Personal Credit Allowed =

Against AMT (Section 1144): Starting in 2009, the new law allows the Altern=
ative =

Motor Vehicle Credit, including the tax credit for purchasing hybrid vehicl=
es, =

to be applied against the Alternative Minimum Tax. Prior to the new law, th=
e =

Alternative Motor Vehicle Credit could not be used to offset the AMT. This =
means =

the credit could not be taken if a taxpayer owed AMT or was reduced for som=
e =

taxpayers who did not owe AMT.




________________________________
From: SamGIII <[email protected]>
To: [email protected]
Sent: Fri, February 4, 2011 9:42:25 AM
Subject: [EVDL] Tax and rebate incentives


I've been lurking for a couple years now studying up and planning and I thi=
nk
it's time to come out of the closet. I'll likely begin my first conversi=
on
this year. I've searched the archives and spent a fair amount of time
looking through a number of other webpages trying to find this info but I
suspect many of you will know the answer right off the top of your head.

I live in California. I'm going to convert an early sixties bug.

Are the tax incentives (Federal or State) or rebates still in effect?

>From what I can gather about the most I could hope for was a Tax Credit of
10% of the conversion cost, but some of the links seem to be gone now and
I'm wondering if even that has gone away?

Just as an editorial note: I'm sure all of you feel the same way--it's
irritating that there's a $7,500(Fed) AND a $5,000(State) incentive on new
ZEV and yet almost nothing for a conversion? Seems to me that the folks
that are doing conversions are doing double duty by not only creating a new
ZEV, but also removing an old, polluting vehicle from the road! =


Thanks for your help!

Sam

-- =

View this message in context: =

http://electric-vehicle-discussion-list.413529.n4.nabble.com/Tax-and-rebate=
-incentives-tp3260622p3260622.html

Sent from the Electric Vehicle Discussion List mailing list archive at =

Nabble.com.

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=

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Discussion Starter · #6 ·
Hello Sam,

You list the total cost to do this conversion which includes modifications
to the vehicle and the total cost of each item that is listed in the
invoice.

Keep every single cost statement for your conversion, even each sales slip
for a bolt or nut. You can even give a estimate cost of a old or existing
parts you may have in storage. Do not forget to add the spare parts items
that you may carry in the EV for emergency repair.

Our state has a similar tax credit which is call Alternative Energy System
Credit. I use that credit when I built my super insulated house which has 6
to 8 times more R-factor then a standard constructed house which uses a
different wood and concrete structure.

At that time, the mistake that was made in the tax form, is to include all
the expenses. This resulted in about 2000 pages of data. I took these
forms directly to the IRS office and they said, they will not even look at
it or even under stand it.

Roland



----- Original Message -----
From: "SamGIII" <[email protected]>
To: <[email protected]>
Sent: Friday, February 04, 2011 12:30 PM
Subject: Re: [EVDL] Tax and rebate incentives


>
> Thanks Roland!
>
> It's interesting that "cost of conversion" is left pretty wide open. I
> suppose like most things with taxes you'd want to have good records to
> back
> your numbers up, but my first thought is that could include a whole host
> of
> costs including things like shipping for components, shop rental (for
> those
> who'd need it), bodywork that's required for the modification, etc.
>
> Has anyone encountered any clear guidelines as to what could be included
> as
> a "cost of conversion" and what could not be included?
> --
> View this message in context:
> http://electric-vehicle-discussion-list.413529.n4.nabble.com/Tax-and-rebate-incentives-tp3260622p3260980.html
> Sent from the Electric Vehicle Discussion List mailing list archive at
> Nabble.com.
>
> _______________________________________________
> | REPLYING: address your message to [email protected] only.
> | Multiple-address or CCed messages may be rejected.
> | UNSUBSCRIBE: http://www.evdl.org/help/index.html#usub
> | OTHER HELP: http://evdl.org/help/
> | OPTIONS: http://lists.sjsu.edu/mailman/listinfo/ev
>

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Discussion Starter · #7 ·
Jeff: Nope, I can't find any more detailed instructions above and beyond
"enter the cost of the conversion."

I would be inclined to agree with Roland--I'll keep very detailed records
and receipts and include EVERYTHING that is required to convert the car and
let them come back and tell me what they don't think belongs, I suppose. I
think a strong case could be made for many things outside of the main
components (e.g. body modifications for battery boxes, suspension & brake
modifications, LED lights, heater, low rolling resistance tires, lightweight
wheels, etc.)

Thanks for your help!

Sam
--
View this message in context: http://electric-vehicle-discussion-list.413529.n4.nabble.com/Tax-and-rebate-incentives-tp3260622p3261185.html
Sent from the Electric Vehicle Discussion List mailing list archive at Nabble.com.

_______________________________________________
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Discussion Starter · #8 ·
I kept a spreadsheet of my expenditures and just entered the total while
doing my taxes last year. I considered my time as "free." As long as it's
not unreasonable, I'm sure they won't bat an eye. Of course, it's important
to keep records in case you get audited.

-Dan



SamGIII <[email protected]> wrote:

>
> Jeff: Nope, I can't find any more detailed instructions above and beyond
> "enter the cost of the conversion."
>
> I would be inclined to agree with Roland--I'll keep very detailed records
> and receipts and include EVERYTHING that is required to convert the car and
> let them come back and tell me what they don't think belongs, I suppose. I
> think a strong case could be made for many things outside of the main
> components (e.g. body modifications for battery boxes, suspension & brake
> modifications, LED lights, heater, low rolling resistance tires,
> lightweight
> wheels, etc.)
>
> Thanks for your help!
>
> Sam
> --
> View this message in context:
> http://electric-vehicle-discussion-list.413529.n4.nabble.com/Tax-and-rebate-incentives-tp3260622p3261185.html
> Sent from the Electric Vehicle Discussion List mailing list archive at
> Nabble.com.
>
> _______________________________________________
> | REPLYING: address your message to [email protected] only.
> | Multiple-address or CCed messages may be rejected.
> | UNSUBSCRIBE: http://www.evdl.org/help/index.html#usub
> | OTHER HELP: http://evdl.org/help/
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>
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