Ohio Electric Vehicle Tax Credit

Ohio electric vehicle legislation pushed to back burner amid pandemic from energynews.us

Ohio is one of the states in the United States that has an electric vehicle tax credit. This tax credit is designed to encourage citizens to buy electric vehicles. The Ohio electric vehicle tax credit is a refundable tax credit that can be claimed by Ohio residents who purchase or lease a new electric vehicle. This article will discuss the details of the Ohio electric vehicle tax credit, including who is eligible, how much the credit is worth, and how to claim the credit.

Who is Eligible for the Ohio Electric Vehicle Tax Credit?

Ohio residents who purchase or lease a new electric vehicle are eligible for the Ohio electric vehicle tax credit. The vehicle must be purchased or leased in Ohio, and it must be used primarily in Ohio. The credit is available to individuals, businesses, and non-profit organizations. The amount of the credit depends on the battery capacity of the electric vehicle.

How Much is the Ohio Electric Vehicle Tax Credit Worth?

The Ohio electric vehicle tax credit is worth up to $2,500 for electric vehicles with battery capacities of 10 kilowatt-hours (kWh) or more. For electric vehicles with battery capacities of less than 10 kWh, the credit is worth $1,000. The credit is refundable, which means that if the credit exceeds the amount of tax owed, the excess credit will be refunded to the taxpayer. Electric vehicles that are eligible for the federal electric vehicle tax credit are also eligible for the Ohio electric vehicle tax credit. The federal tax credit is worth up to $7,500 for electric vehicles, depending on the battery capacity and the manufacturer of the vehicle. The federal tax credit is not refundable, which means that if the credit exceeds the amount of tax owed, the excess credit cannot be refunded to the taxpayer.

How to Claim the Ohio Electric Vehicle Tax Credit

To claim the Ohio electric vehicle tax credit, taxpayers must complete the Ohio Schedule IT BUS and attach it to their Ohio income tax return. The Schedule IT BUS requires taxpayers to provide information about the electric vehicle, including the make and model of the vehicle, the battery capacity of the vehicle, and the date of purchase or lease. Taxpayers must also provide documentation of the purchase or lease of the electric vehicle. The Ohio electric vehicle tax credit is available on a first-come, first-served basis. The Ohio Department of Taxation will accept tax credit applications until the total amount of available tax credits is exhausted. Taxpayers who apply for the tax credit after the available tax credits have been exhausted will be placed on a waiting list for any unused tax credits that become available.

Conclusion

The Ohio electric vehicle tax credit is a great incentive for Ohio residents to purchase or lease electric vehicles. The credit is worth up to $2,500 for electric vehicles with battery capacities of 10 kWh or more, and it is refundable. To claim the credit, taxpayers must complete the Ohio Schedule IT BUS and attach it to their Ohio income tax return. The tax credit is available on a first-come, first-served basis, so Ohio residents who are interested in claiming the credit should apply as soon as possible.