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Electric Cart Company, Inc.
5480 Hwy 98 West
Santa Rosa Beach, FL 32459
850-622-2000

info@electriccartcompany.com

TAX CREDIT

 IMPORTANT DOCUMENTS:

*Star IRS Certification Letter

*Columbia Parcar IRS Certification Letter

*IRS Form 8936

Tax Credits Now Available for Taxpayers Who Purchase
Qualified Plug-In Electric Vehicles
 
In late April, 2009, the IRS issued a press release (see below) announcing tax breaks for purchasing qualified plug-in electric vehicles. The tax credit afforded by two different laws is significant. The Electric Cart Company, LLC, (ECC) has compiled the attached information to assist in clarifying just what impact these tax credits may have on the “ultimate” cost of a qualifying electric vehicle purchased this year. 
 
 
The full version of the press release from the Internal Revenue Service follows:
 
 
 

Tax Breaks Available for Taxpayers Who Purchase
Qualified Plug-In Electric Vehicles
 
IR-2009-45, April 24, 2009
WASHINGTON — Plug-in electric vehicles using certain types of batteries may qualify for a new tax credit if purchased this year, the Internal Revenue Service said today.  
The Emergency Economic Stabilization Act of 2008 (EESA) and the American Recovery and Reinvestment Act of 2009 (ARRA) created two new tax credits for various types of electric vehicles, which may include what are commonly referred to as neighborhood electric vehicles.
ARRA creates a tax credit for low-speed or two- or three-wheel electric vehicles, such as motor scooters, purchased after Feb. 17, 2009, and before Jan. 1, 2012. The amount of the credit is 10 percent of the cost of the vehicle, up to a maximum credit of $2,500. To qualify, a vehicle must be either a low-speed vehicle that is propelled to a significant extent by a rechargeable battery with a capacity of at least 4 kilowatt hours or be a two- or three-wheeled vehicle that is propelled to a significant extent by a rechargeable battery with a capacity of at least 2.5 kilowatt hours.
EESA created a tax credit for vehicles that have at least four wheels and draw propulsion using a rechargeable traction battery with at least four kilowatt hours of capacity. For 2009, the minimum credit is $2,500 and the credit tops out at $7,500 to $15,000, depending on the weight of the vehicle and the capacity of the battery.
During 2009, low-speed, four-wheeled vehicles manufactured primarily for use on public streets, roads and highways (neighborhood electric vehicles) may qualify both for the EESA credit and, if purchased after February 17, 2009, for the ARRA credit for low-speed electric vehicles. A taxpayer may not claim both credits for the same vehicle. Vehicles manufactured primarily for off-road use, such as for use on a golf course, do not qualify for either credit.
The Internal Revenue Service is working on guidance regarding certification procedures for both of these credits.
 

 
 
 
At the time of the press release, the IRS was still working on guidance regarding certification procedures for both of these credits. However, IRS certification procedures have now been finalized. 
 
The Electric Cart Company is quick to caution in this and any tax matter, that each individual taxpayer should consult their tax advisor to determine qualification for any tax credit and to clarify the benefit that may be available given their individual circumstances.
 
 
In summary, on April 24, 2009, the IRS announced tax credits that could benefit taxpayers who purchase Star Car’s Low Speed Vehicles. According to the IRS, taxpayers may qualify for one of the following credits:
 
The ARRA Credit. A credit equal to 10% of the cost of the vehicle, up to $2,500 for a Low Speed Vehicle purchased after February 17, 2009 and before January 1, 2012. Or,
 
The EESA Credit. A credit of $2,500 to $7,500 for a four wheeled vehicle that draws propulsion using a rechargeable battery with at least four kilowatt hours of capacity purchased during 2009. The actual credit, within the above limitations, is determined by the capacity of the battery.
 
 
The following information may be used to understand how each of the tax credits may apply to purchases of Star Car and Columbia ParCar Low Speed Vehicles (LSVs) or Neighborhood Electric Vehicles (NEVs):
 
All Low Speed Vehicle models (also referred to as NEV’s or Neighborhood Electric Vehicles) manufactured and sold by Star Car and ParCar meet the NHTSA requirements as defined by Title 49 CFR, Chapter V, Part 571.500, Standard No. 500; Low-speed vehicles. 
 
The referenced NHTSA classification applies to this category of Motor Vehicles used by consumers and commerce.
 
All Star Car LSV and ParCar LSV/NEV models are manufactured primarily for use on public streets, roads and highways.
 
The primary source of energy for all of the LSVs/NEVs is the electric power grid. Batteries are recharged by “plugging in” to the grid. By definition, this makes each of Star Car’s LSV models and ParCar’s NEV models a “Plug-In Electric Vehicle.”
 
All of Star Car LSVs are propelled by a rechargeable battery with a capacity of at least 4 kilowatt hours. Star Car has certified 12 models. The battery capacity for ten of these models is based on the 6 volt Trojan T-105 used in a 48-Volt battery pack is 10.80 kWh *. Two Star Car LSV models use the 8 volt Trojan T-875 48-Volt and their battery capacity is 8.16 kWh *. 
 
All Columbia ParCar LSV/NEVs are propelled by a rechargeable battery with a capacity of at least 4 kilowatt hours. ParCar has certified 12 models that utilize the US Battery US2200 6 volt battery in the 48-volt battery pack. The battery capacity is 11.10 kWh *.   
 
Based on the above capacities, ten Star Car LSVs have been certified by the IRS for a tax credit of $5,335.60. Two Star Car 2-passenger “bubble cars” that use the 8-volt battery has been certified for a tax credit of $4,234.72.   Columbia ParGo NEVs has been certified for a tax credit of $5,460.70. 
 
      * The above capacities are based on published ratings found in the Trojan and US Battery product specification guides.
 
 
 
 
 
 
 
 
 
 
 
 
Compare Star Car and Columbia ParCar
Low Speed Vehicles (LSVs) to
IRS Announcement IR-2009-45 Requirements
 
 
IR-2009-45
Referenced Requirement
 
All Star Car and Columbia ParCar
Low Speed Vehicle (LSV) Models
 
Meets
Requirement?
ARRA Credit
   (American Recovery & Reinvestment Act of 2009)
 
To qualify, a vehicle must be purchased after February 17, 2009 and before January 1, 2012 and a vehicle must be…
 
     “a low-speed vehicle…
 
 
 
 
 
     that is propelled to a significant 
     extent by a rechargeable battery…
 
     with a capacity of at least 4 kilowatt
     hours…”
 
 
 
 
 
 
 
All Star Car and Columbia ParCar LSV models are manufactured to meet the NHTSA requirements as defined by Title 49 CFR, Chapter V, Part 571.500, Standard No. 500; Low-speed vehicles.
 
All Star Car and ParCar LSV models are propelled by a rechargeable battery pack.
 
All Star Car and ParCar LSV models have a 48-volt battery pack.
 
Star Car has ten models are based on a 6-volt system and two models are configured on an 8-volt system. The capacities at 20-hour rate for each of these 48-volt battery packs from Trojan Battery are as follows: 
 T-105 Pack (6V)      10.80 kWh capacity
 T-875 Pack (8V)        8.16 kWh capacity
CarPar has 12 models based on a 6-volt system. The capacity at 20-hour rate for a 48-volt battery pack from US Battery is as follows:
   US2200 (6V)              11.1 kWh capacity
 
 
 
 
Yes
 
 
 
 
 
Yes
 
 
Yes
 
 
 
 
 
 
 
Yes
Yes
 
 
 
Yes
EESA Credit
   (Emergency Economic Stabilization Act of 2008)
 
To qualify for this specific credit, for the amounts announced, a vehicle must be purchased in 2009 and a vehicle must…
 
     “have at least four wheels…
 
 
        and draw propulsion using a 
     rechargeable traction battery…
 
 
     with at least four kilowatt hours of
     capacity.”
 
 
 
 
 
 
 
 
 
All Star Car and Columbia ParCar LSV/NEVs have four wheels.
 
All Star Car and ParCar LSV/NEVs draw propulsion using a rechargeable traction battery pack.
 
All Star Car and ParCar LSV/NEV models have a 48-volt battery pack. 
 
Star Car has ten models are based on a 6-volt system and two models are configured on an 8-volt system. The capacities at 20-hour rate for each of these 48-volt battery packs from Trojan Battery are as follows: 
 
 T-105 Pack (6V)      10.80 kWh capacity
 T-875 Pack (8V)        8.16 kWh capacity
 
CarPar has 12 models based on a 6-volt system. The capacity at 20-hour rate for a 48-volt battery pack from US Battery is as follows:
  
   US2200 (6V)              11.1 kWh capacity
 
 
 
 
Yes
 
 
Yes
 
 
 
Yes
 
 
 
 
 
 
 
 
Yes
Yes
 
 
 
 
 
Yes
Important Notes: 
- The capacities listed herein are derived using published battery ratings from Trojan Battery and US Battery. 
- ARRA credit: Battery capacities must simply exceed 4 kilowatt hours. 
- EESA credit: The amount over the $2,500 minimum for which a purchase may qualify is determined based on the battery pack                  size greater than 4 kilowatts. 
- Consult your tax advisor to determine qualification for the listed credits.


The American Recovery and Reinvestment Act of 2009 Credit
If a taxpayer qualifies for the American Recovery and Reinvestment Act of 2009 tax credit, the basic amount eligible for Star Car vehicle models would be determined as follows:
 
A credit equal to 10% of the cost of the vehicle, up to $2,500 for a Low Speed Vehicle purchased after February 17, 2009 and before January 1, 2012. Or,
 
                                                   E C C                                                       NET COST        
Star Car                    Retail Price           Available ARRA          after ARRA
Model                         (9/1/09) *                 Tax Credit                 Tax Credit
 
B48-2                         $   8,857.                     $    886.                       $ 7,971.
BN48-2                        $   9,079.                     $    908.                       $ 8,171.
B48-4                          $ 10,507.                     $ 1,051.                       $ 9,456.
BN48-4                        $ 11,257.                     $ 1,126.                       $10,131.
B48-6                          $ 11,321.                     $ 1,132.                       $10,189.
48-2-R                         $   7,114.                     $    711.                       $ 6,403.
48-4SF-R                    $   7,821.                     $    782.                       $ 7,039.
48-4L-R                       $   8,550.                     $    855.                       $ 7,695.
48-6SF-R                    $   9,286.                     $    929.                       $ 8,357.
48-6L                           $ 10,814.                     $ 1,081.                       $ 9,733.
48L-4SF                      $   8,686.                     $    869.                       $ 7,817.
48L-6SF                      $   9,893.                     $    989.                       $ 8,904.
 
 
            Columbia                      E C C                                                       NET COST        
ParCar                      Retail Price           Available ARRA          after ARRA
Model                         (9/1/09) *                 Tax Credit                 Tax Credit
 
                                               
NEV2-48A                   $   8,899.                $    889.90                        $ 8,010.         
SM2-GN                     $ 10,299.                $ 1,029.90                        $ 9,270
SM2-TN                      $ 10,299.                $ 1,029.90                        $ 9,270
SM4-GN                     $ 11,599.                $ 1,159.90                        $10,440
SM4-TN                      $ 11,599.                $ 1,159.90                        $10,440
SUV-SN                      $   9,789.                $    978.90                        $ 8,811
SUV-LN                      $ 10,189.                $ 1,018.90                        $ 9,171
MG1-CN                     $ 17,989.                $ 1,798.90                        $16,191
MG1-DN                     $ 18,989.                $ 1,898.90                        $17,091
MG1-TN                      $ 21,389.                $ 2,138.90                        $19,251
MG1-VN                     $ 18,989.                $ 1,898.90                         $17,091
            MG1-RN                         $ 26,989.                $ 2,500.00 (Maximum)    $24,489
 
 
 
 
 
 
           
 
 
 
The Emergency Economic Stabilization Act of 2008 Credit
 
The Emergency Economic Stabilization Act of 2008 (EESA) creates a tax credit for a low speed vehicle (LSV) that is propelled to a significant extent by a rechargeable battery with a capacity of at least 4 kilowatt hours. For four-wheel vehicles, the minimum credit is $2,500.00. This credit is increased by $417.00 for each kilowatt hour of traction battery capacity in excess of 4 kilowatt hours. The maximum credit in this category is $7,500.00.
 
All Star Car 48-volt LSV models and all Columbia ParGo LSV (NEV) models with four wheels qualify for the EESA tax credit. The actual credit within the above limitations, however, is determined by the overall capacity of the specific battery pack. The following chart uses battery amp-hour rating information published in the manufacturer’s specification guide at the 20-hour rate for two six-volt batteries and an one eight-volt battery. :
 
                                                                                     Star Car                   ParCar                  Star Car
                                                                                     Trojan Battery        US Battery           Trojan Battery     
                                                                                     T-105            (6V) ____      US2200________ T-875 (8V)            
 
A. Battery Pack Capacity                                            10.80 kWh                11.10 kWh            8.16 kWh
 
B. Minimum Capacity Required for Credit                   -4.00 kWh                -4.00 kWh           -4.00 kWh       
 
C. Additional Capacity Above Minimum                       6.80 kWh                 7.10 kWh             4.16 kWh    
 
E. Additional Credit Per kWh Allowed                           x $ 417.00              x $ 417.00          x  $ 417.00       
F. Total Additional Credit Allowed                                   $   2,835.60              $   2,960.70         $ 1,734.72
 
G. Base Credit                                                             + $   2,500.00           + $  2,500.00      + $  2,500.00
 
H. Total Amount of Credit                                           $  5,335.60               $ 5,460.70         $  4,234.72
 
 
 
If a taxpayer qualifies for the EESA tax credit, the basic amount eligible for Star Car LSV models with Trojan T-105 and Trojan T-875batteries and Columbia ParCar LSV/NEV models with the US Battery US2200 battery would be determined as follows:
 
                                                 E C C                                 Certified            NET COST    
Star Car                  Retail Price                  EESA              after EESA
Model                         (9/1/09) *               Tax Credit           Tax Credit
 
B48-2                           $   8,857.                     $ 4,234.           $ 4,623.
BN48-2                        $   9,079.                     $ 4,234.           $ 4,845.
B48-4                           $ 10,507.                     $ 5,335.           $ 5,172.
BN48-4                        $ 11,257.                     $ 5,335.           $ 5,922.
B48-6                           $ 11,321.                     $ 5,335.           $ 5,986.
48-2-R                         $   7,114.                     $ 5,335.           $ 1,779.
48-4SF-R                    $   7,821.                     $ 5,335.           $ 2,486.
48-4L-R                       $   8,550.                     $ 5,335.           $ 3,215.
48-6SF-R                    $   9,286.                     $ 5,335.           $ 3,951.
48-6L                           $ 10,814.                     $ 5,335.           $ 5,479.
48L-4SF                      $   8,686.                     $ 5,335.           $ 3,351.
48L-6SF                      $   9,893.                     $ 5,335.           $ 4,558.
 
 
               

 

 

                Columbia                    E C C                                 Certified            NET COST    
ParCar                    Retail Price                  EESA              after EESA
Model                         (9/1/09) *               Tax Credit           Tax Credit
 
NEV2-48A                   $   8,899.                $ 5,460.                $ 3,439.         
SM2-GN                     $ 10,299.                $ 5,460.                $ 4,838.
SM2-TN                      $ 10,299.                $ 5,460.                $ 4,839.
SM4-GN                     $ 11,599.                $ 5,460.                $ 6,139.
SM4-TN                      $ 11,599.                $ 5,460.                $ 6,139.
SUV-SN                      $   9,789.                $ 5,460.                $ 4,329.
SUV-LN                      $ 10,189.                $ 5,460.                $ 4,729.
MG1-CN                     $ 17,989.                $ 5,460.                $12,529.
MG1-DN                     $ 18,989.                $ 5,460.                $13,529.
MG1-TN                      $ 21,389.                $ 5,460.                $15,929.
MG1-VN                     $ 18,989.                $ 5,460.                $13,529.
                MG1-RN                     $ 26,989.                $ 5,460.                $21,529.
 
Always consult your tax advisor for any and all tax advice before making any purchases.