Tax cheats found lucrative ground last year with the $7,500 federal tax credit for electric vehicles. The IRS says that of the approximately 65,000 people that claimed the credit, 20 percent were in error.
The EV tax credit was claimed for such vehicles as the Hummer H3, Dodge Durango, and Cadillac Escalade.
According to the IRS, the credit only applies to vehicles primarily powered by an electric motor, and that can be plugged in to recharge the batteries. Further, the batteries must have a capacity of at least 5 kilowatt-hours. A vehicle that meets this minimum requirement would render a $2,500 credit. For every kilowatt-hour of capacity over 5, an additional $417 credit is earned, up to a maximum of $7,500.
Amongst the erroneous filers, the IRS pointed out that 29 were actually in prison for the entire year. Even some IRS employees who did not have electric cars claimed the credit.
Cars currently on sale that would qualify for the credit are the Tesla Roadster, the Nissan Leaf, and the Chevy Volt.
(Source: Associated Press)