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tanbowen
Returning Member

Can I claim the EV federal tax credit if I financed it thru the dealership?

Hio all, I'm planning to finance/loan a BMW 530e thru my local dealership. I checked the IRS and I'm sure there is $5800 federal tax credit available for the 530e. But can I claim it if I finance the vehicle? Or I must pay it in full in order to claim the tax credit? Appreciate your answers!
5 Replies
Critter
Level 15

Can I claim the EV federal tax credit if I financed it thru the dealership?

Of course you can take the credit if you finance it ... you bought it and it is yours.  The fact there is a lien on it is immaterial.  Can you imagine how few people could take the credit if there was a cash purchase stipulation ?  

Anonymous
Not applicable

Can I claim the EV federal tax credit if I financed it thru the dealership?

just a fyi.  if you lease it, a method of financing, you don't get the credit.  

tanbowen
Returning Member

Can I claim the EV federal tax credit if I financed it thru the dealership?

Thanks a lot! Actually, I'll not lease it, instead, loan it

tanbowen
Returning Member

Can I claim the EV federal tax credit if I financed it thru the dealership?

Thanks a lot for replying! Actually, I can hardly find answers if financed EV eligible for the federal tax credit lol, interesting...

Critter
Level 15

Can I claim the EV federal tax credit if I financed it thru the dealership?

No matter where/how  you finance the auto loan it is still just a lien on the car title like a mortgage on your home.  You OWN  the property you just couldn't pay it all in cash up front, someone else needed to loan you the money.  

 

If this was a restriction the IRS reg would say so ... like it says leased vehicles are not allowed since you are not the registered owner of the car.  

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