Yes, if your daughter is the original owner of the vehicle, she should be able to claim the credit, assuming all of the other requirements are met.
If you buy the car in your name and gift it to her, neither of you would be eligible for the credit.
Here's an excerpt from the IRS instructions for Form 8936:
"The following additional requirements must be met to qualify you for the credit.
- You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee is entitled to the credit.
- You placed the vehicle in service during the tax year.
- The original use of the vehicle began with you.
- You acquired the vehicle for use or to lease to others, and not for resale.
- You use the vehicle primarily in the United States. If you use the vehicle primarily outside the United States, see section 168(g)(4) for a list of exceptions that may apply."
So, you would be gifting her the money that purchased the car, not the car itself. Depending on the price, and whether you have made other gifts, this may create a Gift Tax liability for you. Follow this link to learn more about that.
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