Global Electric Motorcars (GEM) recently announced that GEM vehicles
…have been certified to the Internal Revenue Service (IRS) for the Qualified Plug-In Electric Drive Motor Vehicle Credit, part of the Emergency Economic Stabilization Act of 2008.
The credit is available for new vehicles purchased in 2009 and applies to models from 2007, 2008 or 2009. The tax credits by model are as follows:
GEM e2 – $3,751.00
GEM e4 – $3,751.00
GEM e6 – $3,751.00 (with 12-volt batteries)
GEM e6 – $5,002.00 (with 8-volt batteries)
GEM eS – $3,751.00
GEM eL – $3,751.00
GEM eL XD – $5,002.00
It appears that the GEM may also still be eligible for the separate LSV tax credit (10% of price up to $2,500). I will try to confirm this. Learn more: GEM
Comment: This is a major change in the market as the tax credit will cut the cost of the GEMs significantly, some models in half, for commercial customers looking for utility vehicles and for individuals looking purchasing for personal transportation. For the latter, the vehicles will now be on par or close to the cost of golf cars. It will be interesting to see if other LSV/NEV manufacturers become certified for the tax credit. Other manufacturers could be at a distinct disadvantage if they do not qualify for the tax credit as well. Originally LSVs qualified for the plug-in tax credit then they were excluded and given a separate tax credit. – Marc Cesare
Hello,
My comments are coming from a new early stage manufacturer of a roadworthy electric Low Speed Vehicle, EcoVElectric. Thank you for not using the term “NEV”.
Last Fall the Congresss passed and the President signed the $700B Trouble Asset Relief Program and with it buried inside was also the Energy Improvement/Extension Act which defined the plug-in electric vehicle tax credit. I researched this bill and all the other bills referenced or related to it. As far as I could tell, all Low Speed Vehicles, including EcoV would qualify. But without spending a minimum of $10,000 to the IRS for a ruling and $10,000 for a lawyer to prepare the paperwork, we decided to wait until this happened naturally as part of 2009 tax code that would need to be done anyway. So we have told potential investors since last Fall that EcoV would be entitled to tax credits of $3751 on the standard model and $5,002 on the extended range version. Exactly the same as GEM is entitled to.
Then this year started and the American Recovery and Reinvestment Act was passed and that caused some confusion. They stated specifically that electric Low Speed Vehicles would (also) be qualified plug-in electric vehicles and were entitled to a $1,000 tax credit along with 2 and 3 wheel electric vehicles previously excluded (thanks to California politicans). However they also said that consumers could not double dip. This meant to me we had a choice to offer consumers; either a $1,000 tax credit or a $3,751 / $5,002 tax credit. Let me think which I would take??
But the IRS had not put in writing this ruling. It is in writing now and I am having a hard time getting a copy, but all Low Speed Electric Vehicles should qualify. One interesting question is now 8 States have created Medium Speed Vehicles laws, which allow LSV’s with usually some roll over protection, like EcoV has, to legally go 35mph and operate on roads 40 or 45mph. Unfortunately, these vehicles are not legal in those States on Federal highways where FMVSS rules apply. But unless the FBI or CIA starts writing speeding tickets for MSV/LSV’s on Federal Highways, I think you are safe, but the IRS tax credit may not apply.
By the way, it is interesting to note how the plug-in electric vehicle tax credit was written or influenced, maybe? The max credit was set at $7,500. A qualified vehicle gets $2,000 for the first 4 kWh of energy stored in it (this was previously set by IRS). Then $417 for each kWh up to the max of $7,500. Now, let’s see where the $417 came from. GM’s Volt has 16kwh of stored energy (although they use only about 50% of this to protect the battery), so take the $5,000 energy tax credit remaining, substract 4 from 16 = 12 kWh extra. Take $5,000/12 = $416.67 per extra kWh. Do you think GM’s lobbyists influenced this bill? Don’t you love politics in this country!
Visit us at http://www.EcoVElectric.com Great news coming this Fall and Federal or State governments had zero to do with it!
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A definite great read..Tony Brown