Internal Revenue Code:Sec. 30. Credit for qualified electric vehicles

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter A - Determination of Tax Liability
         PART IV - CREDITS AGAINST TAX
          Subpart B - Other Credits
        

Statute

    Sec. 30. Credit for qualified electric vehicles
 
    (a) Allowance of credit
      There shall be allowed as a credit against the tax imposed by
    this chapter for the taxable year an amount equal to 10 percent of
    the cost of any qualified electric vehicle placed in service by the
    taxpayer during the taxable year.
    (b) Limitations
      (1) Limitation per vehicle
        The amount of the credit allowed under subsection (a) for any
      vehicle shall not exceed $4,000.
      (2) Phaseout.--In the case of any qualified electric 
        vehicle placed in service after December 31, 2005, the credit 
        otherwise allowable under subsection (a) (determined after the 
        application of paragraph (1)) shall be reduced by 75 percent.
      (3) Application with other credits
        The credit allowed by subsection (a) for any taxable year shall
      not exceed the excess (if any) of -
          (A) the regular tax for the taxable year reduced by the sum
        of the credits allowable under subpart A and sections 27, over -
          (B) the tentative minimum tax for the taxable year.
    (c) Qualified electric vehicle
      For purposes of this section -
      (1) In general
        The term ''qualified electric vehicle'' means any motor vehicle
      -
          (A) which is powered primarily by an electric motor drawing
        current from rechargeable batteries, fuel cells, or other
        portable sources of electrical current,
          (B) the original use of which commences with the taxpayer,
        and
          (C) which is acquired for use by the taxpayer and not for
        resale.
      (2) Motor vehicle
        For purposes of paragraph (1), the term ''motor vehicle'' means
      any vehicle which is manufactured primarily for use on public
      streets, roads, and highways (not including a vehicle operated
      exclusively on a rail or rails) and which has at least 4 wheels.
    (d) Special rules
      (1) Basis reduction
        The basis of any property for which a credit is allowable under
      subsection (a) shall be reduced by the amount of such credit
      (determined without regard to subsection (b)(3)).
      (2) Recapture
        The Secretary shall, by regulations, provide for recapturing
      the benefit of any credit allowable under subsection (a) with
      respect to any property which ceases to be property eligible for
      such credit.
      (3) Property used outside United States, etc., not qualified
        No credit shall be allowed under subsection (a) with respect to
      any property referred to in section 50(b) or with respect to the
      portion of the cost of any property taken into account under
      section 179.
      (4) Election to not take credit
        No credit shall be allowed under subsection (a) for any vehicle
      if the taxpayer elects to not have this section apply to such
      vehicle.
    (e) Termination
      This section shall not apply to any property placed in service
    after December 31, 2006.
 

Sources

    (Added Pub. L. 102-486, title XIX, Sec. 1913(b)(1), Oct. 24, 1992,
    106 Stat. 3019; amended Pub. L. 104-188, title I, Sec. 1205(d)(4),
    1704(j)(4)(A), Aug. 20, 1996, 110 Stat. 1776, 1881.)
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 30 was renumbered section 41 of this title.
                                 AMENDMENTS
     2005 - Energy Policy Act of 2005.  (A) Section 30(b)(3)(A) is amended
     by striking `sections 27 and 29' and inserting `section 27'.
     Effective Dates- the amendments made by this section shall apply
     to credits determined under the Internal Revenue Code of 1986 for
     taxable years ending after December 31, 2005.

      2004 - Subsec.318,Pub.L.108-311, amended Sec.30(b)(2)by 
    inserting a new paragraph (2).
      2002 - Pub. L. 107-147, Sec. 602(a)(1), amended Sec. 30(b)(2)by 
    changing Dec. 31, 2001 to Dec. 31, 2003 and changing subparagraphs
    (A), (B), and (C) from 2002, 2003, and 2004 to 2004, 2005, and 2006.
     Sec. 602 (a)(2) amended Sec. 30(e)by changing Dec. 31, 2004 
     to Dec. 31, 2006. The amendments made by this section shall 
     apply to property placed in service after Dec. 31, 2001.    
      1996 - Subsec. (b)(3)(A). Pub. L. 104-188, Sec. 1205(d)(4),
    substituted ''sections 27 and 29'' for ''sections 27, 28, and 29''.
      Subsec. (d)(1). Pub. L. 104-188, Sec. 1704(j)(4)(A)(i), inserted
    ''(determined without regard to subsection (b)(3))'' before period
    at end.
      Subsec. (d)(4). Pub. L. 104-188, Sec. 1704(j)(4)(A)(ii), added
    par. (4).
                      EFFECTIVE DATE OF 2004 AMENDMENT
      Pub.L.108-311,Sec.318, Effective date:--The amendments made 
    by this section shall apply to property placed in service after
    December 31, 2003.

                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by section 1205(d)(4) of Pub. L. 104-188 applicable to
    amounts paid or incurred in taxable years ending after June 30,
    1996, see section 1205(e) of Pub. L. 104-188, set out as a note
    under section 29 of this title.
                               EFFECTIVE DATE
      Section 1913(c) of Pub. L. 102-486 provided that: ''The
    amendments made by this section (enacting this section and 179A of
    this title and amending sections 53, 55, 62, and 1016 of this
    title) shall apply to property placed in service after June 30,
    1993.''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 53, 55, 179A, 1016, 6501
    of this title.