How to Get a Tax Credit for the Chevy Volt

The Chevy Volt is General Motor's electric vehicle released in 2010. Two years prior to the Volt's release, the United States Congress passed a bill granting $7500 in federal tax credits to buyers of plug-in electric vehicles going into service after January 1, 2010. The first 200,000 buyers of the Chevy Volt will qualify for the federal tax credit. Subsequent buyers will qualify for 50 percent or 25 percent tax credits after the 200,000 car mark is reached. Receiving this tax credit will bring the price of the vehicle down from around $41,000 to around $33,500.

Instructions

1

Buy the Chevy Volt or other plug-in electric vehicle. Its release began in 2010 in several states but continues through more states through 2011. Other eligible electric vehicles include the Nissan Leaf.

2

When you file your taxes, obtain and complete the 8834 tax form titled "Qualified Plug-in Electric and Electric Vehicle Credit," a separate form you use to claim your tax credit. It requests information such as the make of the vehicle and when it was put into use. This document can be retrieved from the IRS website.

3

Fill out the 3800 form titled "General Business Credit," if you intend the to use the vehicle for business. Claim the credit on line 1z. Additionally, fill out Section B of the 8834 form. This asks you to indicate the percentage of the vehicle's usage used for business and to make some calculations based on the cost of the vehicle. This form can also be located on the IRS website.

4

Report that you have claimed a credit on your "U.S. Individual Income Tax Return" 1040 tax form. The 1040 is used to file personal taxes. You will find a line item in the "Tax and Credits" section where you can indicate that you have filled out Form 8834.