C-Max Energi Tax Credit

C-Max Energi Charge Port with Nissan Leaf Charger

Ford C-Max Energi Charge Port with Nissan Leaf J1772 Charger

The C-Max Energi is now appearing on the IRS web site.  It qualifies for a tax credit of $4007.  [The IRS has now stated that the tax credit is $4,007.  It was previously listed at $3751 and stated by Ford as $3750.]  The publication describing the tax credit is here.  The IRS document describing how the tax credit is calculated is here.  The C-Max has a 7.6 kWh battery.  This is the IRS statement for the calculation, “For vehicles acquired after 12/31/2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours.”  [The language is ambiguous and the IRS has now stated the credit is $4007.  The $3751 credit assumed that the 7.6 kWh battery uses 7 kWh for the calculation.  The fractional kWh is now used in the calculation.  That results in a tax credit of $4007.  IRS form 8936 is used to claim the credit.  Details of the credit are in an IRS notice.  The credit is not phased out until Ford has sold 200,000 vehicles that qualify for the credit.  At the present time, the C-Max Energi, Focus Electric, and Fusion Energi are the only Ford cars that qualify for the credit.  It will take quite awhile before Ford sells 200,000 of these three models.

The $4,007 tax credit for the Energi is not lost when the Alternative Minimum Tax (AMT) is applicable.  Here’s an IRS Q&A on the topic:

Q. Does the Alternative Minimum Tax (AMT) impact the alternative motor vehicle credit?

A. Starting in 2009, the new law allows the alternative motor vehicle credit, including the tax credit for purchasing hybrid vehicles, to be applied against the alternative minimum tax. Prior to the new law, the alternative motor vehicle credit could not be used to offset the AMT.

The Department of Energy web site to find state laws and incentives for hybrid and electric vehicles is located here.

Ford C-Max Hybrid (not Energi) owners do not qualify for a Federal Tax credit.

This blog was first published 22 Nov 2012.  It was updated 13 Dec 2012, 26 Dec 2012,  April 12, 2013, and September 27, 2013.

 

 

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