Federal tax credit not just for electric vehicles

(October 18, 2010) SANTA MONICA, Calif. — Edmunds.com points out that the $7,500 federal tax credit  known as the "New Qualified Plug-In Electric Drive Motor Vehicle Credit," is not just for electric vehicles, but rather is for any vehicle with a battery of a qualifying size.

"Stating that the Chevy Volt qualifies for the tax credit does not mean that the feds have declared it to be an EV," explained Edmunds' GreenCarAdvisor.com Senior Editor John O'Dell. "It is expected that the Toyota Prius PHEV also will qualify for a credit from the same fund as the Volt, but Toyota does not now and never has classified the Prius PHEV as an 'EV.' It is a hybrid electric vehicle, 'hybrid' for short."

To qualify for the credit a vehicle has to have an electric drive system, but can also have a gas engine or some other form of propulsion. Vehicles with batteries of at least four kWh qualify for a tax credit of $2,500, and as the battery gets bigger the credit steps up to a maximum of $7,500.

It is expected that the Chevy Volt and the Nissan Leaf will qualify for the maximum credit.

For specific information on the vehicles that qualify for federal tax credits, click here