Free Golf Car? IRS Ruling Combined With Some Creativity Has Golf Cart Ownership Skyrocketing
Under IRS Ruling the Government Will Pay You to Purchase a Qualified Golf Car
Golf cars. Who wouldn’t love to have one. They’re fun, prestigious and convenient. They’re also expensive, right? In today’s economy who has that kind of extra cash laying around? Well, what if you could get your very own golf cart for free… and what if the the government would help you do it?
A recent IRS ruling says many golf carts qualify for the government sponsored low-speed electric car tax credit. That federal tax credit (actual dollar for dollar money from the IRS) currently provides from $4,200 to $5,500 for the purchase of an electric vehicle. When it is combined with similar incentive plans in many states, the tax credits may be enough to pay for the entire cost of a qualifying golf cart. In fact, there are even stories of schemes where golf cart dealers are buying back the golf carts from customers. One internet site claims you can make $2000 for doing almost nothing. It’s certainly a loophole due to the fact that the tax credit is intended for electric vehicles. However, according to IRS rulings, electric golf cars are vehicles as long as they have specific features and meet certain guidelines.
What features do golf cars need to have to be included? Other than the obvious requirement of being electric, the main feature is that the golf car must be road worthy. Qualifying road worthy golf carts are the same as normal golf cars except they have some safety features – like the fact that they must have harness-type seat belts and side mirrors. There are also speed requirements. For example, under the guidelines the vehicle must achieve a speed of at least 20 miles per hour in under 1 mile and can’t have a top speed which exceeds 25 miles per hour. Currently, the program is only valid for qualifying vehicles purchased through Dec. 31, 2009.
As you might suspect, there are limits and some hoops to jump through to get the tax credit. However, it seems as though many consumers are taking advantage of the program. If you’re interested, make sure that you buy a qualified vehicle from a qualified dealer. Also, it’s a good idea to check with your tax adviser to make sure you’re in total compliance. In some areas of the country there may be a shortage of qualified golf carts because golf car sales have skyrocketed since the IRS ruling. An article in the Wall Street Journal originally broke on the subject back in October. Unfortunately, our crack team at Talkbuys.com somehow missed it. However, we didn’t miss it today as it became one of the top stories on Google, probably as a result of being mentioned on some talk show or something.
To read the actual IRS ruling that discusses the government’s tax credit when purchasing low speed electric vehicles, including golf cars, go to the IRS Published Bulletin located at http://www.irs.gov/irb/2009-26_IRB/ar07.html.
