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mljarecki
Returning Member

Inflation Reduction Act Credit for New Electric Vehicle

Please provider the updated qualifications for the $7500 tax credit.  Specifically when the EV must have been purchased and what is the document required to prove purchase.  I believe the issue date of the car's Title or Retail Installment Sales Contract may be used.

3 Replies
Laura_CPA
Employee Tax Expert

Inflation Reduction Act Credit for New Electric Vehicle

Dear Mljarecki, 

 

The clean vehicle credit applies to vehicles (please see list below) purchased after August 16, 2022. You are correct about the documentation required, here's additional resources for you to review: 

 

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mljarecki
Returning Member

Inflation Reduction Act Credit for New Electric Vehicle

I commented "I believe the issue date of the car's Title or Retail Installment Sales Contract may be used."  You replied I'm correct. If so, which of these two documents apply?  Can you point to the answer in the materials you provided?  I can't find the answer anywhere.

Laura_CPA
Employee Tax Expert

Inflation Reduction Act Credit for New Electric Vehicle

Either the car's Title (if purchased out right after August 16th, 2022), this is implied it the material sent to you by stating "..for purchasing a new electric..." OR retail installment sales contract would work. 

 

In the Plug-In Electric Drive Vehicle Credit (IRC 30D) the first sentence backs up the car's title and then under titles Transition Rule for Vehicles purchased before August 16, 2022, Vehicles Purchased and Delivered between August 16, 2022 and December 31, 2022 and What Is a Written Binding Contract? it discusses the written contract which implies the retail installment sales contract. 

 

Please let us know if have any further questions. 

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