@Vanessa A wrote:
No, you would not want to claim the credit for the car you bought on 12/31/2021 if you are going to replace it this weekend. If you sell or dispose of the car within 3 full years, the credit would be recaptured meaning you have to give it back. Since this would be the first year of ownership, you would have to pay 100% of it back.
You would be able to claim the one you buy this weekend would qualify for the credit in 2022, provided you plan to keep it for at least a full year and it continues to meet the qualifications of a qualified electric vehicle.
You have to repay 100% of the credit if you sell your EV in less than 1 year, 66-2/3% if you sell between 1 and 2 years, and 33-1/3% of the credit if you sell between 2 and 3 years.
You could claim the full credit on your 2021 return if you took delivery on or before 12/31/21, but you would have to repay the full credit on your 2022 return. So there's not much point in claiming it now unless you think you can invest that $7500 for one year and make a big profit without risking the investment.
You could also claim a credit on your 2022 return for EV#2. But you don't get to keep both full credit amounts.
