Electric car tax credit used car

[jon8]

Can the electric car credit (IRC 30D) be taken if I purchase the car used. If so, how do I know if the previous owner took the credit or not?

Can this credit only be taken once or in multiple years?

[Lisa995]

No, it can only be taken by the original owner, sorry.

https://www.irs.gov/uac/summary-of-the-credit-for-qualified-hybrid-vehicles

The Energy Policy Act of 2005 provides a credit for taxpayers who purchase certain energy efficient vehicles, including Qualified Hybrid vehicles.¹ Notice 2006-9 provides procedures for manufacturers to certify to the Internal Revenue Service that certain passenger autos and light trucks qualify for the credit and the amount of the credit.² The credit amount for qualified hybrid vehicles other than passenger autos or light trucks is computed using a different formula. Guidance regarding the credit for new qualified hybrid motor vehicles that are not passenger automobiles or light trucks will be provided in a separate notice. Generally, for a passenger car or light truck that is a qualified hybrid vehicle, a taxpayer may rely on the manufacturer’s certification that a specific make, model and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies.³

Even though a manufacturer has certified a vehicle, a taxpayer must meet the following requirements to qualify for the credit:

1. The vehicle must be placed in service after 12-31-05 and purchased on or before 12-31-10.
   
   
2. The original use of the vehicle must begin with the taxpayer claiming the credit.
   
   a. The credit may only be claimed by the original owner of a new, qualifying, hybrid vehicle and does not apply to a used hybrid vehicle.
   
   
3. The vehicle must be acquired for use or lease by the taxpayer claiming the credit.
   
   a. The credit is only available to the original purchaser of a qualifying hybrid vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.
   
   b. For qualifying vehicles used by a tax-exempt entity, the person who sold the qualifying vehicle to the person or entity using the vehicle is eligible to claim the credit, but only if the seller clearly discloses in a document to the tax-exempt entity the amount of credit.
   
   
4. The vehicle must be used predominantly within the United States.
   

[jdmar25]

Turbo Tax asked if I purchased a used plug in hybrid. I filled out the information and the software said that I was eligible for a credit. I'm not the original owner and the car is from 2017. Please advise!

[JohnW152]

This credit would be claimed on Form 8936.  If you’re not eligible for it, then, to delete Form 8936 in TurboTax Online, open your return in TurboTax and:

1. If you’re on the Hi, let's keep working on your taxes! screen that displays the categories Personal Info, Income & Expenses, and others in the center of the screen, and none of those categories are open, click the dropdown next to any of the categories, then select the Review/Edit or Pick up where you left off button.  If one of the categories is already open and has a Continue button, select the button
2. Next, in the pane on the left side of your screen, you should see Tax Tools.  Select the dropdown to the right of Tax Tools
3. Then, under that, select Tools
4. In the Tool Center pop-up, select Delete a form.
5. Select Delete next to Form 8936 in the list and follow the onscreen instructions.

If you’re using TurboTax Desktop or a download, please see the TurboTax Help article How do I delete a tax form in the TurboTax CD/Download software? for guidance.

If the procedure above doesn’t get rid of the credit, go back through the interview process to delete your relevant information.  In TurboTax Online:

1. If you’re on the Hi TurboTax Client, let's keep working on your taxes! screen, click the Pick up where you left off button
2. Click Federal in the left pane, if you’re not already there
3. Click Deductions & Credits in the banner
4. Scroll down and click Show more to the right of Cars and Other Things You Own
5. Click Start to the right of Energy-Efficient Vehicles
6. Enter information on the subsequent screens that shows your ineligibility for the credit

@jdmar25