1 / 12

The City of Oklahoma City

The City of Oklahoma City. Marty Lawson Fleet Services Division Management Specialist. Our Newest Additions. Tax Credits for Municipalities?. 26 USC § 30D (f) (3), in part

kylene
Download Presentation

The City of Oklahoma City

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The City of Oklahoma City Marty Lawson Fleet Services Division Management Specialist

  2. Our Newest Additions

  3. Tax Credits for Municipalities? 26 USC § 30D (f) (3), in part …the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable…

  4. How Does It Work? Through an open disclosure agreement the municipality passes their tax credit rights to the dealership The dealership offers the vehicle at a reduced price The dealership recovers the price reduction by filing a tax return

  5. Tax Credit Disclosure Example Successful bidder agrees to take the Internal Revenue Service (IRS) Qualified Plug-in Electric Drive Motor Vehicle Credit of $_____ on behalf of [Insert City Name] and will offer a purchase discount of $_____ for each Nissan Leaf electric vehicle purchased.

  6. How Much Credit is Allowed? Federal maximum is $7,500 per vehicle $2,500 per vehicle, plus $417 for the first 5 kWh of battery capacity and $417 for every kWh over 5kWh Battery credit not to exceed $5,000 Maximum credit is reached at 16kWh State credits will vary

  7. Phaseout Period Phaseout begins after 200,000 units sold from the start date of December 31, 2009. 50% for the 1st and 2nd calendar quarters 25% for the 3rd and 4th calendar quarters 0% for each quarter thereafter

  8. The OKC Experience Credit disclosure included in Bid Request Pre-bid meeting included credit discussion First round of bids rejected Added tax references to re-advertised bid Another pre-bid meeting with emphasis on tax credit issues (not tax advise)

  9. Perseverance Paid Off!

  10. Things to Consider Do some tax credit research ahead of time Hold pre-bid meetings about tax credits Provide a research appendix in the bid Be prepared to reject your first offer Consider making tax credit offers mandatory in your bid specification

  11. Research References The following links are provided as references for research. These links are not provided as tax advice. IRS website: http://www.irs.gov/ USC Title 26, Section 30D http://www.law.cornell.edu/uscode/text/26/30D General Information concerning IRC 30 and IRC 30D http://www.irs.gov/businesses/article/0,,id=214841,00.html IRS Form 3800 General Business Credit Form and Instructions http://www.irs.gov/pub/irs-pdf/f3800.pdf http://www.irs.gov/pub/irs-pdf/i3800.pdf IRS Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit Form and Instructions http://www.irs.gov/pub/irs-pdf/f8936.pdf IRS Allowed Nissan LEAF Credit Amount http://www.irs.gov/businesses/article/0,,id=230506,00.html Nissan Website for Tax Incentives http://www.nissanusa.com/leaf-electric-car/index?dcp=ppn.63023881.&dcc=0.240189299#/leaf-electric-car/incentives/findIncentivesByZipCode/73102

More Related