Used PHEV MiniVan purchased for Company use

[MyronL]

Sometime in 2025  we are going to replace our delivery pickup truck with a used Chrysler PHEV mini-van that will cost $24000.  Many of the 2023 used ones are available at this price and appear to be eligible for a $4000 tax credit.  Can this be taken against business income when we intend to use the 179 deduction to defer the purchase of this vehicle?  Can we take both?   How should this be done?

[RobertB4444]

You can take both.  If your electric vehicle qualifies you get a credit for placing it into service as well as being able to depreciate the full value of the vehicle.

Here's the IRS paper on the Commercial Clean Vehicle Credit.

@MyronL 

[MyronL]

When you say depreciate the full value, do you mean the value after the tax credit?  I am a sole proprietor.

If the vehicle is $24,000,  can the company take a tax credit of $4k, then depreciate the $20k?  or $24k?

The dealer has to assign the credit at the time of the sale I believe, in fact they can use the tax credit as a down payment if the tax credit is transferred to them.  Great idea if possible.  Is this true?  

[MyronL]

Also should be noted....this would be a used PHEV MiniVan.

[RobertB4444]

You would depreciate the full value.  So, using your numbers as the example the full $24,000.

The dealer can take the tax credit if the vehicle qualifies and you would assign it to them at the time of purchase.  The forms to do so are then filed by the dealer.

@MyronL