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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

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The City of Oklahoma City

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the city of oklahoma city

The City of Oklahoma City

Marty Lawson

Fleet Services Division

Management Specialist

tax credits for municipalities
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…

how does it work
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

tax credit disclosure example
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.

how much credit is allowed
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

phaseout period
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

the okc experience
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)

things to consider
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

research references
Research References

The following links are provided as references for research. These links are not provided as tax advice.

IRS website:

USC Title 26, Section 30D

General Information concerning IRC 30 and IRC 30D,,id=214841,00.html

IRS Form 3800 General Business Credit Form and Instructions

IRS Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit Form and Instructions

IRS Allowed Nissan LEAF Credit Amount,,id=230506,00.html

Nissan Website for Tax Incentives