topic Can I purchase a new electric car each year and use the tax credit in Get your taxes done using TurboTax

Can I purchase a new electric car each year and use the tax credit

lmelhart — Thu, 06 Jun 2019 13:43:51 GMT

I am considering buying an electric car each year to take advantage of the tax credit but I am not sure if it's a once per lifetime credit?

Yes, if you purchase the eligible electric vehicle during...

DoninGA — Thu, 06 Jun 2019 13:43:52 GMT

Yes, if you purchase the eligible electric vehicle during the tax year you can use the credit for that tax year. If the credit reduces your tax liability to zero any further credit is lost. This is not a once in a lifetime credit.

See the IRS instructions for Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit - https://www.irs.gov/instructions/i8936

But keep in mind that the tax law can change at any time.

SweetieJean — Thu, 06 Jun 2019 13:43:54 GMT

But keep in mind that the tax law can change at any time.

Re: But keep in mind that the tax law can change at any time.

226Ra — Sun, 14 Feb 2021 13:36:56 GMT

Can I purchase two EVs in one year and claim the credit on each one? This assumes I have at least $15,000 in federal tax liability.

Re: But keep in mind that the tax law can change at any time.

DoninGA — Sun, 14 Feb 2021 13:41:26 GMT

@226Ra wrote:

Can I purchase two EVs in one year and claim the credit on each one? This assumes I have at least $15,000 in federal tax liability.

Yes, you can if the EV's are eligible for the credit.

See this website - https://www.fueleconomy.gov/feg/taxevb.shtml