Do I still need to meet the income limits if I transfer the tax credit to a dealer?
Yes. If you transfer the tax credit, you need to sign a document attesting that you expect that your income did not exceed the income limits either last year or this year. If your income exceeds the limits for both of those years, you will be required to repay the[…]
Can I access the upfront tax credit from a direct-to-consumer manufacturer?
The transferable tax credit applies if you buy a vehicle from a direct-to-consumer manufacturer, such as Tesla, Rivian, or Lucid. The definition of “dealer” in the statute is an organization licensed in a state or territory to sell vehicles. The new guidance goes further to state, “To allow for flexibility,[…]
Can I transfer the tax credit on more than one EV?
Each taxpayer can transfer two EV tax credits per year. This can be two new clean vehicle tax credits, OR it can be one new clean vehicle tax credit and one used clean vehicle tax credit. In the case of those filing joint returns, each person may transfer two tax[…]
Do I need to transfer my tax credit to the dealer?
No, you do not need to transfer your tax credit to the dealer. If you want to wait for the tax credit and receive it as a tax refund when you file your taxes next year, you can do that.
If I get my tax credit at the time of sale, will I still need to pay taxes?
You still have to file your tax return and file Form 8936 with your Vehicle Identification Number (VIN). The dealer will give you the necessary paperwork at the time of sale for Form 8936. Be sure you receive a successfully submitted seller report before you leave the dealership. Download our[…]
Does the dealer need to have tax liability to participate in the credit transfer?
No. The dealer does not need to have tax liability to receive the transfer. The dealer simply acts as a pass-through for transferred tax credits. The dealer is required to pass the full amount of the tax credit on to the buyer.
Do I need to have tax liability to receive the upfront tax credit?
No. You can still get the full amount of the tax credit if you transfer your tax credit to the dealer. Historically, many tax credits haven’t been accessible to lower-wealth individuals and households because lower earnings mean lower tax liability. Because the EV tax credits are transferable, the EV buyer[…]
What does it mean that the new and used EV tax credits are transferable?
It means that when you purchase an eligible electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV) and you meet the income requirements, you can choose to transfer your tax credit to a registered dealer and get the FULL amount of the tax credit upfront as a reduction on the[…]
