Low-speed vehicle tax credit

If you’re in the market for a low speed vehicle, now’s the time to consider buying one.  Part of the federal stimulus package allows for a multi-thousand dollar tax credit.  Low-speed vehicle’s look just like golf carts, but the big difference is they’re street ready.  LSV’s are electric, four-wheeled vehicles and with at least 4 kilowatt hours of battery life.  They’re DOT approved and come with seat-belts, signal lights and wiper blades.

If you buy before the end of the year, you can receive a federal tax credit between $4200 and $5400 dollars.  The stimulus package is working for one local business. Myrtle Beach Golf Carts on Highway 544, said they normally sell about 10 low-speed vehicles.  Since the credit was announced, they sold nearly 60 in the last month. 

“The increase is ten-fold,” said David Thomas, Manager of Myrtle Beach Golf Carts. “What we would normally see this time of year, it’s normally the off season for this type of vehicle, but with the tax credit, and it’s ending December 31st, people are definitely taking advantage.“

“A refundable credit is something you can apply for and get a credit or get a refund for taxes you might not have paid in,” said Myrtle Beach CPA Rad Lowery.  And a non-refundable credit is a credit that you can apply for but you only get if you’ve paid in taxes or you have taxes due.“

The credit applies to all new 2008, 2009 and 2010 LSV’s purchased after January 1, 2009 and before December 31st, 2009.  South Crolina is also offering a piggyback credit of 20 percent of the amount the federal credit equals.  Traditional golf carts do not apply.  Check with a CPA and an LSV dealer for more details.