Form 2290 Tax Benefits for Hybrid and Electric Trucks

The prevalence of hybrid and electric trucks in the transport sector has only grown with time especially due to the wide acceptance of eco-friendly solutions. These vehicles do not only reduce carbon footprint, but also can be financially beneficial for the truck owners via filing for IRS Form 2290. This article specifically discusses about how hybrid and electric truck owners can file for Form 2290 and enjoy numerous tax benefits by it.

Understanding Form 2290 and Its Purpose

Form 2290 also referred to as the Heavy Vehicle Use Tax (HVUT), is an annual fee charged on heavy trucks in the US which use the public highways. Usually such vehicle which are over 55,000 pounds have to pay this tax. The IRS however has certain exemptions and reductions on taxation available for hybrid and electric trucks in order to encourage such vehicles that have a lower emissions footprint.

Reduced Tax Rates for Hybrid and Electric Trucks

Due to the latest technology and parts used in their development, hybrid and electric trucks are less heavy than the average diesel trucks. Form 2290 states that a truck that weighs lower than 55,000 pounds, or has lesser usage on highways qualifies for a reduced tax rate.

These vehicles, or automobiles, certainly provide a positive financial aspect to their owners when being compared to heavy duty trucks.

Low mileage vehicles among the Enhanced Vehicle Insurance Program Exempted Trucks.

One of the major perks of a Form 2290 regarding hybrid and electric trucks is with respect to low mileage trucks. More specifically, under section 6091 a vehicle that has not travelled more than five thousand (5000) miles (or 7500 for agricultural purposes) in a year will be categorized as a suspended vehicle. Hybrid and electric trucks are frequently utilized for dedicated services and hence usually fall into the low mile category allowing the owner of the truck to avoid HVUT. Nevertheless, the owner would still be filing Form 2290 to remain compliant with the taxation authorities.

Other federal and state grants and programs applicable to owners of hybrid and electric vehicles

Apart from the Substantial reduction or even exemption of HVUT, owners of hybrid and electric vehicles still have the eligibility to further benefit from state and federal incentives. These tax incentives would further enhance the benefits accrued under Form 2290. Furthermore, the implementation of low consumption mobility target programs such as, grants or rebates would also decrease the overall costs which are the perfect solution for fleet owners who are passionate about the environment.

Easier Method of submission and filing for hybrid and electric trucks

The submission and filing of Form 2290 for Hybrid and Electric is a very simple process and can easily be accomplished through applications that e-file.

Such platforms usually contain features that determine tax discounts and tax exemption based on the type and activity of the vehicle. Truck owners have the tax benefits to their filing e-links and at the same time they are on the right side of the regulations of the IRS.

Form 2290 is not just a tax duty but also a chance for hybrid and electric truck owners to have advantages while also helping mother earth. After understanding the benefits of filings, truck owners and other players are able to focus on maximizing the tax advantages of production and use of sustainable trucking.

Note: For more information, visit IRS website