Plug-in car and scooter tax deductions

[M_Smith]

Plug-in car and scooter tax deductions
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Buyers of new plug-in electric scooters, three-wheelers, and low-speed vehicles will soon be eligible for a 10-percent tax credit on their purchases. (Read our scooter and motorcycle buying advice and reviews.) Low speed vehicles (LSVs) are defined as having four wheels, with a weight of less than 3,000 pounds and a top speed of no more than 25 mph.
Part of the American Recovery and Reinvestment Act of 2009, commonly known as the Stimulus bill, the credit applies to vehicles sold after December 31, 2009. It carries a maximum deduction of $2500, and it is limited to the first 200,000 eligible vehicles sold once the measure takes effect.
A tax credit for purchasers of plug-in automobiles was enacted last year, providing up to a $7500 deduction, depending on the size of the vehicle battery.
The new measure also extends a tax credit to owners of conventional hybrids who convert their cars to plug-ins, a process that involves installing a supplemental battery and other hardware but can enable more electric operation and improved fuel economy. Those vehicles will now be eligible for a $4,000 deduction against the conversion cost. But, the transformation doesn?t come cheap. Consumer Reports recently had our Toyota Prius converted to a plug-in model, at a cost of $11,000.
--Jim Travers
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