I bought an electric vehicle in 2023. The credit was applied to the downpayment. My assumption is that I should not claim that credit for taxes. Can anyone confirm?

In 2023, the credit was not able to be applied directly by the dealer to your purchase.  This is new for 2024.  So basically, you would reduce the purchase price of your vehicle by the credit or rebate you received at the dealership. You would still be able to claim the actual EV credit as whatever they gave you would not have been the EV credit, UNLESS it was a state specific credit they gave you.  It should not have been the federal credit. 

Transfer of new clean vehicle credit.

For vehicles placed in service after 2023, you may be able to transfer the credit amount to the dealer at the time of sale and receive an immediate financial benefit in place of a tax credit claimed on your tax return. You will need to file Form 8936 with your return for the tax year in which the vehicle was placed in service. For details, go to IRS.gov/CleanVehicles.

Transfer of previously owned clean vehicle credit.

For vehicles acquired and placed in service after 2023, you may be able to transfer the credit amount to the dealer at the time of sale and receive an immediate financial benefit in place of a tax credit claimed on your tax return. You will need to file Form 8936 with your return for the tax year in which the vehicle was placed in service. For details, go to IRS.gov/CleanVehicles.

EV Credit-New

EV Credit-Used

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