Federal EV Tax Credit ($7,500) for 2023 Tesla Model Y - Joint Purchase with Primary Qualified

[superman853]

My partner ($120k/year) and I ($360k/year) purchased a 2023 Tesla Model Y (MSRP: $52,990) this week which qualifies for a $7,500 federal tax credit. We are unmarried, do not share the same address yet, and file separate tax returns. He is listed as the primary and I am listed as the secondary (810+ credit score to qualify for a 3.50% interest rate) on the title / loan.

Since my income is above the $150k/year limit, can my partner claim the credit for this vehicle on his federal income tax return since he qualifies? It will be a shared vehicle although he will likely use it more than me.

[Anonymous_ · Accepted solution]

See https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

It appears that if your partner bought it for their own use, then your partner can claim the credit.

[superman853]

Thanks! He will be the primary user of the vehicle. I will use it on occasion.

[ShirlynW]

Yes. Since your partner meets the requirements for the New Clean Vehicles Purchased in 2023 or After Credit shown here. To claim a deduction or credit, you must have legal ownership and a responsibility to pay. The primary borrower is the person legally responsible repaying the obligation. Co-signers agree to work with the primary to repay the loan.

To claim your credit:

• Login into your TurboTax account
• Select deductions and credits
• Work on other tax breaks
• In the Search type in “Electric vehicle credit”
• Click on the Jump to electric vehicle credit