DianeW777
Expert Alumni

Deductions & credits

The credit will be zero on the tax return if it was transferred to the dealer.  I understand how it could be confusing.

 

At your income level and for a new car the credit is $7,500, for your situation.  Below is the rules should you have a 'Recapture Event'.

Recapture event —

(i) In general. A recapture event occurs if, within 3 full years from the date a qualified electric vehicle is placed in service, the vehicle ceases to be a qualified electric vehicle. A vehicle ceases to be a qualified electric vehicle if—

  • (A) The vehicle is modified so that it is no longer primarily powered by electricity;
  • (B) The vehicle is used in a manner described in section 50(b); or
  • (C) The taxpayer receiving the credit under section 30 sells or disposes of the vehicle and knows or has reason to know that the vehicle will be used in a manner described in paragraph (b)(2)(i)(A) or (B) of this section. (ii) Exception for disposition. Except as provided in paragraph (b)(2)(i)(C) of this section, a sale or other disposition (including a disposition by reason of an accident or other casualty) of a qualified electric vehicle is not a recapture event.

@andresu13 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"