FREQUENTLY ASKED QUESTIONS (FAQ)

Q - What constitutes an NEV (Neighborhood Electric Vehicle)?
A normal maximum speed of 20-35 mph (NEV), seat belts, head and tail lights, a windshield, a parking brake, turn signals, rear-view mirrors brake lights, reflectors, and a valid 17-digit Vehicle Identification Number (VIN). 

Q - Can I drive my NEV on city streets?
A - Registered, titled and insured NEVs may be legally driven at a maximum speed of 35 mph on public roads with a posted speed limit of 45 mph or less, unless a city or county ordinance prohibits their operation.

Q – Is the credit actual tax dollars or deduction from income?
A – They are tax credits, dollar-to-dollar reduction from the tax own to the IRS, not an income deduction.

Q – What form will I use to claim my income tax credit?
A – The IRS is developing a new form 8936, named as the Qualified Plug-in Electric Drive Motor Vehicle Credit, to be used for this credit. 

Q – Can consumers or businesses claim credit on more than one unit?
A – Yes, according to the guideline 2009-54, as long as the consumer possesses the requisite tax to absorb the total amount of the credits, each vehicle should qualify for its own credit used for the EESA credit. The form will need to be filed with the 2009 federal tax return.

Q – What is the last date to purchase the units to qualify for the tax credit?
A – All available units must be fully paid for and delivered by December 31, 2009 to qualify, however, it should be noted that orders are on a first come first serve basis, and availability of units changes on a day to day basis. Please contact a Shoppa’s sales professional for current and incoming availability. 

Q - How do I know if I qualify for this tax credit?
A - Qualification for the credit depends on a number of factors.  It is best to consult with your tax advisor to make sure you qualify for this credit.  Generally, if the NEV is acquired and used in your trade or business, then the credit may be able to offset your regular income tax and unused credits may be carried forward or back as a general business credit.  If the NEV is used for non-business purposes, then the credit may be able to offset your regular income tax as a personal credit in the year of purchase but unused credits cannot be carried forward or back.  In any case, the credit is limited to your total regular income tax liability for the year.  As a result, tax-exempt entities (universities, municipalities, non-profits, etc.) and individuals with no regular income tax liability for the year may not qualify for the credit. * 

Q – What is the warranty for these units?
A – Star offers a 4 year limited warranty (2 year bumper to bumper and 4 year frame and chassis).

Q - Who provides parts, service, accessories or warranty work for these NEVs?
A - Shoppa’s Material Handling dealerships across Texas are authorized warranty repair facilities. Additionally, Shoppa’s proudly offers a variety of parts and accessories to compliment any unit. From custom paint jobs to weather enclosures, Shoppa’s carries it. 

Q - Do I have to pay sales tax on this purchase?
A - Units will be taxed at a rate of 6.25%. There is also a fee for the title ($33.00), buyer tag ($5.00), and documentation fee ($50.00).  

Q – Why is there an optional license fee?
A – If the purchaser does not want to use this NEV for on-road use, then they will be able to sign a waiver that will allow them to avoid this fee. If the NEV is intended for on-road use, then the fee shall be paid. 

Q – Where can I get more information?
A - Go to:

IRS NEWS

REVIEW OTHER VEHICLES INCLUDED IN THIS TAX CREDIT 

THE APPROVAL LETTER

A QUICK REVIEW OF FAQ’S

IRS FORM 8936 WILL BE USED FOR THIS CREDIT

WALLSTREET JOURNAL’S ARTICLE

*Disclaimer: See your tax advisor for details and if the credit is available in your circumstances. Any tax advice contained in the body of this document was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local law provisions.