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Federal EV Tax Credit

Forum|Forum|2 years ago
November 6, 2023
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I want to buy an EV which qualifies for the $7500 federal tax credit. I do not have enough tax liability to claim the full credit, and I am already claimed as a dependent anyway. Can I buy the vehicle in my name and transfer the credit to my dad? Or will I somehow get the credit in a tax return even though it is a non-refundable credit?

Best answer by Mike9241

neither idea will work. the credit is not transferable and to get the full credit you must have a tax liability at least equal to the credit.

it also won't work if your dad buys the vehicle since the tax laws require that it be for use of the purchaser.

at the time of purchase the dealership will prepare paperwork in the name of the purchaser which will also be submitted to the IRS for verification purposes when the credit is claimed on a taxpayers return. the IRS is also working on having the dealership deduct the credit from the purchase price. in this situation, my guess is when the taxpayer/purchaser files their return they will be required to recapture any excess credit.

M

Mike9241Answer

neither idea will work. the credit is not transferable and to get the full credit you must have a tax liability at least equal to the credit.

it also won't work if your dad buys the vehicle since the tax laws require that it be for use of the purchaser.

at the time of purchase the dealership will prepare paperwork in the name of the purchaser which will also be submitted to the IRS for verification purposes when the credit is claimed on a taxpayers return. the IRS is also working on having the dealership deduct the credit from the purchase price. in this situation, my guess is when the taxpayer/purchaser files their return they will be required to recapture any excess credit.

N

NolanreiterAuthor

Got it thank you. I’m trying to figure out a way to get the full $7500 before 2024 when the vehicle I’m planning on buying doesn’t qualify for the full credit.