Michael F. Donoughe Tax Credit for Off Road Electric Vehicles Act

This bill expands the clean vehicle tax credit to include new qualified off-road plug-in electric vehicles. The amount of the tax credit allowed for a new qualified off-road plug-in electric vehicle is 10% of the cost of the vehicle or $2,500, whichever is lower.

The bill defines a new qualified off-road plug-in electric vehicle as any vehicle that

• is acquired new and for use by the taxpayer;

• is made by a qualified manufacturer;

• is powered by an electric motor that draws electricity from a battery with a capacity of at least six kilowatt hours;

• has final assembly occurring in North America;

• has a dry weight of less than 3,500 pounds;

• has three or more wheels;

• has one or more seats;

• is manufactured primarily for off-road use;

• is designed for use on rough terrain and, except in the case of a vehicle designed to operate on land and water, is not designed to operate on rails, in the air, or in or on the water; and

• is capable of reaching a speed of 40 miles per hour.

Under current law, a qualified manufacturer is any manufacturer that has a written agreement with the Internal Revenue Service and submits reports containing information about each eligible clean vehicle.

Finally, the bill allows the tax credit for a new qualified off-road plug-in electric vehicle to be transferred from the taxpayer to an eligible entity (e.g., vehicle dealer) in exchange for a financial benefit (e.g., rebate).