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The federal tax credit for new plug-in electric vehicles is worth $2,500 plus $417 for each kilowatt-hour of battery capacity over 5 kWh, and the portion of the credit determined by battery capacity cannot exceed $5,000. Therefore, the total amount of the credit allowed for a new PEV is $7,500.
Conversion Kits (Section 1143): ARRA also provided a tax credit for plug-in electric drive conversion kits. The credit is equal to 10 percent of the cost of converting a vehicle to a qualified plug-in electric drive motor vehicle and placed in service after Feb. 17, 2009. The maximum amount of the credit is $4,000.The credit does not apply to conversions made after Dec. 31, 2011. A taxpayer may claim this credit even if the taxpayer claimed a hybrid vehicle credit for the same vehicle in a previous year.he minimum amount of the credit for qualified plug-in electric drive vehicles is $2,500 and the credit tops out at $7,500, depending on the battery capacity. The full amount of the credit available for a specific manufacturerâs vehicles will be reduced after that manufacturer has sold at least 200,000 vehicles.