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IRS Misfired on Plug-in Tax Credit Claims, Audit Finds

About 20 percent of U.S. tax credits for plug-in electric vehicles and alternative-fuel vehicles were filed in error, according to a government audit.

The credits are important to companies such as General Motors Co. and Nissan Motor Co., which have entered the plug-in market with the $41,000 Chevrolet Volt and the $32,780 Nissan Leaf, respectively. Buyers of those vehicles can claim up to $7,500 from the federal government, and the companies are relying on the credits to be competitive on price with gasoline-based models.