LSV Tax Credits

We have been receiving numerous calls from both consumers and dealers regarding the LSV Tax Credits. I am sure by now you’ve heard the clamor about the Stimulus Package in the National News and the enormous Tax Credits for the purchase of LSVs (Low Speed Electric Vehicles). It’s all true and many people and businesses are taking advantage of this opportunity.  

Yes, We believe the American SportWorks LSV-48V meets the guide lines.

We applied for IRS certification and expect a response on or before November 16, 2009. We are confident our LSV will qualify for the Tax Credits.

Tax Credit Info:

 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. 

We believe the ASW LSV-48V will qualify for this credit (10% or approximately $600).

 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. 

We believe the ASW LSV-48V will qualify for this credit ($4,234.72).

 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.

Notes for ASW Dealers

 If you plan to sell our Street Legal LSV and want to make sure your customer get the Tax Credits then you need to know a few things.  

 Not all states or localities allow the use of LSVs, and some states have additional requirements. You are responsible for knowing and meeting your state Dealer requirements.

  “Not all Street Legal LSV’s are equal” Unless a LSV has been federally approved it will not receive a Tax Credit.  Just because its street legal doesn’t mean it will qualify.” ASW has applied for and expects formal approval from the IRS around mid November.   

Has this car been federally approved?  If it has then they should have proof with a letter from the federal government IRS. Each manufacturer must present their car for Federal approval. Again, ASW has this requirement in process and will forward proof in the form of the approval letter we receive from the IRS.

 The purchaser may rely on the manufacturer’s certification from the IRS that the vehicle qualifies for the tax credit, including cases in which the certification is received after the purchase of the vehicle.

Notes for Purchasers(end user)

The purchaser may claim a credit with respect to a vehicle if the following requirements are satisfied:

The vehicle is acquired after February 17, 2009, and on or before December 31, 2011 (ARRA credit of 10% of the cost of the vehicle);

or, but not both

The vehicle is placed in service by the taxpayer in a taxable year beginning after December 31, 2008, and is purchased by the taxpayer on or before December 31, 2009  (EESA credit of $4,234.74);

and for either credit

·       The original use of the vehicle commences with the taxpayer;

·       The vehicle is acquired for use or lease by the taxpayer, and not for resale;

·       The vehicle is used predominantly in the United States.

 

 Be on the lookout I’ll have More Info Soon!

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PLEASE NOTE: The attached IRS letter omits the SM4 and SUV models, the IRS has acknowledged their error and indicated we will receive a corrected letter early next week, but we did not want to delay getting this information into your hands.

Columbia has received the official IRS notification letter that acknowledges and confirms that certain model years of Columbia’s Low Speed Vehicles are eligible for the Qualified Plug-In Electric Vehicle Credit for purchaser’s who may be entitled to take the credit. 

Columbia vehicles meeting the following requirements qualify:

Model Years Qualified: 2008, 2009, 2010
Models Qualified:	MG1:	MEGA Low Speed Vehicles
	NEV2:	Eagle 2 Passenger Low Speed Vehicle
	NEV4:	Eagle 4 Passenger Low Speed Vehicle
	SM2:	Summit 2 Passenger Low Speed Vehicle
	SM4:	Summit 4 Passenger Low Speed Vehicle
	SUV:	Summit Utility Vehicle

 The amount of the credit available is based on the specific battery pack installed in the certified vehicle.  If the vehicle year and model number are in compliance with the above, the amount of the eligible tax credit as acknowledged by the IRS is determined by the battery pack installed therein. The three packs available in most Columbia LSV models and the associated tax credits are:           

Battery Pack Installed in the Above Referenced Vehicle*	Amount of Eligible Credit
Standard Capacity Batteries (US 2200, 48 Volt Pack)	$ 5,475.71
High Capacity Batteries (US 145, 48 Volt Pack)	$ 5,856.02
AGM Batteries  (Discover or Deka AGM, 48 Volt Pack)	$ 4,574.99

             * Note: Not all battery pack options are available in every Columbia vehicle.

It is critical that you notify your customers that they should seek tax guidance from a qualified source, prior to purchasing vehicles based on their particular ability to claim the available credit.   Columbia only represents that the products referenced herein meet the requirements as outlined by the IRS, not that any specific taxpayer will receive or be eligible for any tax credit.

Provide the attached letter (which is also available on Columbia’s website www.parcar.com) to prospective customers, use it in advertising and refute claims from other LSV suppliers who are resorting to less than honorable tactics to undermine Columbia and your reputation in your markets!

Should you have any questions, please contact your Sales Manager or myself immediately.

Finally, if you anticipate additional orders and do not have those orders into Columbia yet for the significant increase in sales you should experience with this latest news – do so immediately.  Our backlog is at record levels and orders received after October 10^th may not be able to be shipped prior to December 31^st.

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On April 24, 2009, the IRS announced tax credits that could benefit taxpayers who purchase Columbia'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 Columbia Low Speed Vehicles:

All Low Speed Vehicle models (also referred to as NEV's or Neighborhood Electric Vehicles) manufactured and sold by Columbia 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 Columbia Low Speed Vehicle models (also referred to as NEV's or Neighborhood Electric Vehicles) are manufactured primarily for use on public streets, roads and highways.

The primary source of energy for all of Columbia's Low Speed Vehicles is the electric power grid. Batteries are recharged by "plugging in" to the grid. By definition, this makes each of Columbia's models a "Plug-In Electric Vehicle."

All of Columbia's Low Speed Vehicles are propelled by a rechargeable battery with a capacity of at least 4 kilowatt hours.

For information about purchasing a Columbia Low Speed Vehicle, call Columbia at 1-800-222-4653.

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The IRS has indicated in the text of their release (shown below in its entirety) that they are working on guidance regarding certification procedures for both of these credits.

In this and any tax matter, taxpayers 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.

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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.

The above release was found at: http://www.irs.gov/newsroom/article/0,,id=207051,00.html