Georgia Electric Vehicle Tax Credit

Topic: Georgia Electric Vehicle Tax Credit

Georgia Electric Vehicle Tax Credit

What is the best electric vehicle for you?

Electric vehicles are available in a variety of styles to suit your needs. All have batteries, and some must be recharged by plugging them in.

Incentives

• State-sponsored incentives
• The $5,000 credit for BEVs was phased out in Georgia in 2016, but the state legislature is currently considering new vehicles and charging equipment incentives. Customers of Georgia Power may be eligible for a $250 rebate if they install a Level 2 Charger in their house.
• The rebates will be accessible until December 31, 2021.

Federal Tax Credits

• A federal income tax credit of up to $7,500 may be available for all-electric and plug-in hybrid cars purchased after 2010.
• Tax Credits for Clean Vehicles
• Georgia offers tax credits for low-emission “alternative fuel” vehicles (LEV/ZEV) and medium/heavy-duty vehicles (MDV/HDV).

Low/Zero-Emission Vehicles: Beginning July 1, 2015, the present “GA Low Emission Vehicle (LEV) and Zero Emission Vehicle (ZEV) Certification Program (OCGA 48-7-40.16)” will be phased out. The tax credit is not available for vehicles purchased or leased after June 30, 2015. You have up to five years from the date of purchase or lease to claim the credit if you bought or leased your LEV or ZEV on or before June 30, 2015.

• Alternative Fuel Medium-Duty/Heavy-Duty Vehicles – The state of Georgia is granting the following tax incentives as of July 1, 2015:
• A taxpayer may claim a credit for a medium-duty vehicle (MDV) purchase made on or after July 1, 2015, and before June 30, 2017, up to a maximum of $12,000.00 per vehicle.
• A taxpayer may claim a credit for a heavy-duty vehicle (HDV) purchase made on or after July 1, 2015, and before June 30, 2017, up to $20,000.00 per vehicle.
• Eligibility for the LEV/ZEV Emission Vehicle, Alternative Fuel Vehicle Conversion, or Electric Vehicle Charger Tax Credits
• You may be qualified for one of the following tax credits if your vehicle was purchased or leased before July 1, 2015, is registered in Georgia, fulfils the low or zero-emission standard, and is fueled solely by an alternative fuel *.
• The cost of a low-emission vehicle (LEV) is 10% of the car’s MSRP, or $2,500. (whichever is less)
• The cost of a zero-emission vehicle (ZEV) is 20% of the car’s cost, or $5,000. (whichever is less)

Note: To qualify for this credit, the vehicle must use electricity generated by an onboard combustion unit. Even if the car has a label indicating an LEV, hybrid electric, diesel, and gasoline vehicles do not qualify. To be eligible, vehicles must run entirely on alternative fuel.

10% of the cost of converting a vehicle to alternative fuel, or $2,500 (whichever is less).

Chargers for electric vehicles – 10% of the cost of the charger plus installation, or $2,500 (whichever is less).

Conditions:

• Only businesses engaged in manufacturing, storage and distribution, processing, telecommunications, tourism, or research and development are eligible for an electric vehicle charger tax credit. Individual residences and retail establishments are not eligible.
• A certified charger can charge on-road vehicles and has a voltage rating of greater than 130 volts.
• The charger must be installed in Georgia, be open to the public, and remain there for at least 5 years.
• The following are examples of alternative fuels (but not limited to):
• Natural Gas is a type of fuel that is used (compressed or Liquefied)
• Electricity from a battery (Hybrids that run on gasoline or diesel are not eligible.)

Propane

Fuel Cells Made of Hydrogen

*A vehicle that can only run on alternative fuel is referred to as “solely by an alternative fuel.” The tax credit does not apply to vehicles capable of running on gasoline or diesel.

Tax credits for LEV/ZEV can be carried forward for a maximum of 5 years and cannot exceed the taxpayer’s income tax liability. MDV/HDV credits are not transferable.

Alternative Fuel Medium-Duty Vehicle (MDV)/Heavy-Duty Vehicle (HDV) Tax Credits Requirements

• You may be eligible for an Alternative Fuel MDV or HDV tax credit if your MDV or HDV was acquired on or after July 1, 2015, and fits the requirements listed below.
• For MDV, the gross vehicle weight ratio (GVWR) must be between 8,500 and 26,000 pounds, and for HDV, it must be more significant than 26,000 pounds.
• A new commercial vehicle from an Original Equipment Manufacturer (OEM) or a third-party equipment manufacturer is required.
• MDV must be powered entirely by alternative fuels (may include hybrid electric drives using alternative fuels).
• Manufacturers must design HDVs to run on alternative fuels at least 90% of the time.
• For five years, seventy-five per cent of Georgia’s mileage must be accumulated.
• The car must be registered in Georgia for a minimum of 5 years.
• A taxpayer’s or related entity’s total tax credit cannot exceed the lesser of the taxpayer’s income tax liability or $250,000.00.
• There is no carryover of unused credit to a subsequent or preceding year’s tax liability.

Georgia Electric Vehicle Tax Credit

Georgia’s Current Incentives

Job Creation Tax Credit for Alternative Fuel and Advanced Vehicles

A company that makes alternative energy items for battery, biofuel, and electric car businesses is eligible for a five-year yearly tax credit. The tax credit amount is determined by the number of new full-time jobs that are eligible.

Qualified entities must be defined as businesses, which excludes retail establishments. The amount of the credit varies depending on how the county the business is located ranks in terms of unemployment and income levels.

A Tax Credit for Equipment for Supplying Electric Vehicles (EVSE)

For the purchase and installation of approved EVSE, an eligible business enterprise may claim an income tax credit. The EVSE must be in Georgia and open to the general public. The tax credit is worth up to $2,500 and covers 10% of the cost of the EVSE.

Georgia Power residential customers who install a Level 2 Charger in their home are eligible for a $250 refund. Georgia Power corporate customers who install a 208/240-volt Level 2 charger will receive a $500 incentive. Additional information on these and other measures to assist households and businesses in installing charging stations may be found in Georgia Power’s online EV resources.

Electric Transportation Make-Ready is a programme offered by Georgia Power.

The utility is responsible for all infrastructure up to and including the charger. All commercial, municipal, and industrial clients are eligible to apply.

Georgia Power offers a Plug-In Electric Vehicle Charging Rate Incentive for residential users depending on the time of use. Customers must have an intelligent charger that can track charger usage independently. This rate has lower costs from 11 p.m. to 7 a.m. to encourage EV charging at night.

Tax rebates and fees for electric vehicles
Sections to follow:

1. Electric vehicle tax credits (both federal and state)
2. A tax for using the roads every year
3. The threat to the state tax credit in 2015.

There are two types of tax credits that apply to purchasing an electric vehicle: a federal tax credit and a state tax credit in Georgia.

The tax credit from the federal government:

1. $7,500 for most plug-in cars, whether pure electric like the Nissan Leaf or “range-extended” like the Chevy Volt.
2. Some gas hybrids, such as the Ford Energi, are only given partial credit due to battery size.
3. Cannot be carried over from year to year; to take advantage of this credit, you must owe $7500 in federal income taxes in a single year.
4. Fill out IRS Form 8936 (not 8834)
5. You don’t have to worry about any of the above if you’re renting (tax liability or IRS paperwork). The tax credit has already been applied to your lease, resulting in a cheaper payment. The credit is taken by the leasing bank and passed on to you in a decreased lease fee.
6. Applicable for the first 200,000 cars produced by each manufacturer, then phased out over a year; Tesla and GM have already triggered this sunset provision, and the tax credit for them is almost gone.

Tax credit in Georgia:

1. Was assassinated in 2015! (Until then, the information below was valuable)
2. For the purchase or lease of pure electric cars, there is a $5000 income tax credit (not a deduction!) (e.g. Leaf yes, Volt no)
3. Can be carried over from year to year for a total of five years, which is advantageous if you don’t owe $5000 in state taxes in a single year.
4. Both of these links describe the Georgia paperwork process:
5. Unlike the federal credit, you must complete your paperwork for the state credit, even if you are leasing; if a dealer tells you differently, politely disregard them because they are misinformed.
6. The state tax credit expired on July 1, 2015, but you can still get it if you bought or leased your electric vehicle before that date.
7. At least a month before you file your tax return, you must complete a form with the state environmental office! Read the instructions mentioned above. If you wait until early April to file your taxes, you may find that you are too late to receive the state tax credit.

These are tax credits, not tax deductions. Assuming you owe enough in taxes, this is essentially cash in your pocket, usually in the form of a refund check once you’ve filed your return.

Many people misunderstand what a tax credit is or are unaware of how much state and federal income tax they pay each year. Tax credits are significantly more valuable than tax deductions, and the incentives listed above are tax credits.

When calculating your tax liability to the US or Georgia, look for the “total tax” line on your most recent tax return, not the refund or amount-due line.

The total tax line represents the amount of money you’ve paid in taxes. After your pay-check withholdings were accounted for, the refund / amount-due line indicates what was leftover. Don’t get these two numbers mixed up! These tax credits are available to everybody, even if they have a low income and a small tax liability.

All major tax preparation software products support the numerous forms required to collect these tax credits.

“Georgia and Electric Vehicles (2015)” — This four-page information sheet, which can be obtained via the main UCS link above, highlights the primary reasons to support EV-friendly policies in Georgia, including:

1. Electric vehicles are less expensive to operate. – Electric vehicles keep more money in the state.
2. Electric vehicles are more environmentally friendly (even when powered by a dirty power grid)
3. Electric vehicles work well with renewable energy sources.

Comparison table of three Georgia House legislation (HB 122, HB 176, and HB 220) – this excellent table will help you understand the several proposals under consideration; note that HB 220 is the consensus bill with the most support.

This table is based on a paper published by the Atlanta EVDC. Because the legislative situation can change quickly, this table is from mid-February and may contain dated information at any moment after then.

Impact of Withdrawing the Electric Vehicle Tax Credit on the Georgia State Economy, a paper that indicates how eliminating the tax credit will have a significant negative impact on Georgia’s economy in the coming years, costing the state hundreds of millions of dollars.

Securing America’s Future Energy, a nonpartisan organisation of business executives and retired senior military officers concerned about global energy security, commissioned the research (SAFE).

Tim Echols, a member of Georgia’s Public Service Commission and an EV owner, has written two articles that can be found below. Each of them is an excellent set of rapid talking points to go over with any state legislator (or your neighbour or your Facebook friends) to explain why the EV tax credit should be kept.

Why Should Georgia Keep the ZEV/LEV Income Tax Credit?

Keep Georgia’s electric vehicle tax credit.

In conclusion:

1. EVs keep more money in the local economy rather than sending it to out-of-state or international oil firms.
2. The tax credit we earned is returned to us as a refund after submitting our taxes, and it is then spent. It purchases items such as clothing, appliances, and services in Georgia.
3. Electric vehicles (EVs) work well in our current electric system. Overnight charging uses the extra capacity we have available at certain times.
4. Electric vehicles (EVs) help alleviate Atlanta’s smog problem and will assist us in returning to EPA compliance.
5. Electric vehicles (EVs) convey a clear statement to millennials about our priorities. Atlanta will become a more livable city as a result of this investment.

With the growing interest and investment in electric vehicle (EV) technology, OEMs, suppliers, dealers, and customers must be aware of federal and state incentives that could help them finance their EV purchases. Several potential credits and discounts are available from both the state and private utilities in Georgia. Take into account the following:

Job Creation Tax Credit for Alternative Fuel and Advanced Vehicles

A business that manufactures alternative energy items for battery, biofuel, and electric vehicle (EV) enterprises is eligible for a five-year state tax credit depending on the number of new full-time employee employment created in the qualifying activity. The credits range from $750 to $3,500 per year, depending on the county of operation, unemployment rates, and income levels, among other factors. If specific additional conditions are met, an extra one-time credit of $500 per new job produced may be awarded. Businesses in the retail sector are not eligible. (For more information, see OCGA 48-7-40 et seq.)

Tax Credit for Electric Vehicle Supply Equipment

Each qualified EV charger purchased or leased by an eligible business firm is eligible for a state income tax credit. The chargers, also known as electric vehicle supply equipment (EVSE), must be installed in Georgia, be publicly accessible, and stay there for five years. The credit is 10% of the EVSE cost, up to $2,500, and it cannot exceed the taxpayer’s income tax burden.

Alternative Fuel Vehicle Conversion Tax Credit

A Georgia taxpayer who converts a conventionally fueled car to an alternative fuel vehicle (AFV) registered in the state is eligible for a state income tax credit. The credit is 10% of the conversion cost, up to $2,500, and it cannot exceed the taxpayer’s income tax burden.

Exemption for High-Occupancy Vehicles and High-Occupancy Toll Lanes

High occupancy vehicle (HOV) and high occupancy toll (HOT) lanes are available to AFVs with the appropriate alternative fuel licence plate, regardless of the number of passengers. Toll-free usage of the HOT lanes is available to qualified AFVs. Plug-in electric cars and bi-fuel or dual-fuel vehicles that run on natural gas or propane are examples of AFVs. Before getting a licence plate, applicants must show proof of full payment of registration fees.

Rate Incentive for Plug-In Electric Vehicle Charging – Georgia Electric Power

Customers charging plug-in EVs overnight can get a discounted electricity rate from Georgia Power. Eligible customers must have a smart metre that can track charger usage independently.

People Also Ask:

Does Georgia give tax credit for electric cars?

Georgia Power offers a $250 credit to residential customers who install a Level 2 EVSE between January 1, 2020, and December 31, 2020. Visit the Georgia Power Electric Vehicles page for more information, including a list of qualifying EVSE and how to apply.

How many times can you claim the electric vehicle tax credit?

The tax credit can only be claimed once and cannot be carried over yearly. Use IRS Form 8936 to claim the electric vehicle and vehicle tax credit.

Is there an electric vehicle tax credit in Georgia?

Tax Credit for Electric Vehicle Supply Equipment (EVSE) For the purchase and installation of approved EVSE, an eligible business enterprise may claim an income tax credit. The EVSE must be in Georgia and open to the general public. The tax credit is worth up to $2,500 and covers 10% of the cost of the EVSE.

What kind of tax incentives are there in Georgia?

The Georgia Low Emission Vehicle (LEV) and Zero Emission Vehicle (ZEV) Tax Credits are available to Georgia taxpayers. Tax Credit for Emissions Reduction. Businesses: Job Creation Tax Credit for Alternative Fuel and Advanced Vehicles.

When to apply for electric vehicle rebate in Georgia?

Georgia Power offers a rebate on electric vehicle supply equipment (EVSE). Georgia Power offers a $250 credit to residential customers who install a Level 2 EVSE between January 1, 2020, and December 31, 2020. For further information, including the eligible EVSE and how to apply, visit the website.

Are there any tax credits for EVSE in Georgia?

For the purchase and installation of approved EVSE, an eligible business enterprise may claim an income tax credit. The EVSE must be in Georgia and open to the general public. The tax credit is worth up to $2,500 and covers 10% of the cost of the EVSE.

Recommended Articles: