On its website, the IRS has added Audi, MINI, and Toyota Prius models to the list of vehicles that are eligible for the plug-in electric drive motor vehicle credit.

Code Sec. 30D(a) provides a credit to the purchaser of a qualified plug- in electric drive motor vehicles including passenger vehicles and light trucks (“qualifying vehicles”). For qualifying vehicles acquired after December 31, 2009, the Code Sec. 30D(a) credit is equal to $2,500 (Code Sec. 30D(b) (2)) plus an additional amount, based on battery capacity, that cannot exceed $5,000. (Code Sec. 30D(b)(3))

The total amount of the Code Sec. 30D(a) credit allowed for a qualifying vehicle is limited to $7,500.

This credit phases out over 6 quarters (“phase-out period”) beginning when a manufacturer has sold at least 200,000 qualifying vehicles for use in the U.S. (determined on a cumulative basis for sales after December 31, 2009). (Code Sec. 30D(e)(2)) The IRS provides a list of qualifying vehicles on its website.

Taxpayers purchasing one of the vehicles on the qualifying vehicle list can claim the Code Sec. 30D(a) credit using Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two- or Three-Wheeled Plug-in Electric Vehicles).
New plug-in electric drive motor vehicles added to credit list. The IRS has added Audi, MINI, and Toyota Prius models to the list of vehicles that are eligible for the plug-in electric drive
motor vehicle credit under Code Sec. 30D(a).

• The 2020 Audi e-tron Sportback is eligible for the maximum credit of $7,500. The 2020 Audi A8L PHEV and AudiQ5 PHEV are eligible for a credit of $6,712.
• The 2020 MINI Cooper S E Hardtop 2 Door and MINI Cooper S E Hardtop are eligible for the maximum credit of $7,500. The 2020 and 2021 MINI Cooper S E Countryman
ALL4s are each eligible for a credit of $5,002.
• The 2021 Toyota RAV4 Prime Plug-In Hybrid is eligible for the maximum credit of $7,500. The 2020, 2021 Prius Prime Plug-in Hybrid is eligible for a credit of $4,502.