Let me answer this in the same order:
1) The OBBB eliminates the EV credit sooner than expected on September 30th, 2025 with the tax credit for installing an EV charger at home ending June 30, 2026. It is possible to claim bonus depreciation and Section 179 on the same vehicle.
2) It is possible that you can generate an NOL within your SMLLC and claim a deduction on your tax return potentially offseting wage income. However, the 100 hours of activity is just one of the tests of material participation. You would want to review the other rules.
3) You would use form 8936 and Sch A to calculate your EV credit. The vehicle must meet certain IRS qualifications and income limits could apply.
4) You're correct that a vehicle with GVW under 6,000 would be subject to the luxury auto limit. You're also correct that you will need to reduce your basis by the amount of the credit claimed, either $7,500 for new or $4,000 for used vehicle. The $7500/$4000 is taken as a credit before you calculate the luxury auto limit of $20,400 under IRC 280F.
5) The credit for used vehicles is calculated as up to $4,000 OR 30% of the sale price, whichever is less. Eligibility requirements:
- Purchase before September 30, 2025.
- Purchased from a licensed dealer at a sale price of $25,000 or less.
- The vehicle must be at least 2 model years older than the purchase year, have a GVWR under 14,000 pounds, and meet battery capacity requirements.
- It must be for use primarily in the U.S., not previously transferred after August 16, 2022, and you cannot be the original owner or claimed as a dependent.
- You cannot have claimed this credit in the past 3 years.
6) You cannot generate an NOL with Section 179 expense net of all your business income. In this situation, bonus depreciation would make more sense. The OBBB has also restored the 100% bonus depreciation. If you have some income, you could claim Sec 179 first and then bonus depreciation of the amounts the are below your net income. Another consideration is recapture of section 179 deduction if you sell or dispose of the vehicle before the end of it's useful life or if business use percent drops below 50%.
