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How do I file for a clean vehicle tax credit if I am not able to obtain a clean vehicle setter report

My question is
1.  What date qualifies you for the tax credit:  Is it the date car placed in service or date I paid for the car?
2.  Am I still able to file for the credit if I am not able to obtain a clean Vehicle Seller's Report?  If so what information should I submit to the IRS in lieu of the report

The back story details: 

I purchased a previously owned Leaf at the end of 2024 but vehicle was put into service just after 2025.  I completed the information on Terbo Tax for a clean vehicle tax credit for a previously owned vehicle.  Information accepted and form 8936 was generated.  The car and I meet criteria for the credit HOWEVER I am not able to obtain a Clean Vehicle Seller's report from the dealership.   The car was purchased at the end of 2024 but not put into service until just after 2025.    The dealership said that the VIN of the car was not entered into the database at the time sale because the car was not yet 2 yrs old at the time I paid for it but was 2 yrs old by the time the car was put into service.  Terbo tax did accept the above information, generated form but electronic filing of my Federal taxes was declined as the VIN for this tax credit was not in the data base.

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4 Replies

How do I file for a clean vehicle tax credit if I am not able to obtain a clean vehicle setter report


@Ohweeby wrote:

My question is
1.  What date qualifies you for the tax credit:  Is it the date car placed in service or date I paid for the car?
2.  Am I still able to file for the credit if I am not able to obtain a clean Vehicle Seller's Report?  If so what information should I submit to the IRS in lieu of the report

The dealership said that the VIN of the car was not entered into the database at the time sale because the car was not yet 2 yrs old at the time I paid for it but was 2 yrs old by the time the car was put into service. 


 

1) Placed in service.  But it is extremely unusual for a person to purchase a personal vehicle and it not immediately be placed in service.  What circumstances led to that?

 

2) You need the Seller's Report.

 

3) The model year needs to be two years before the calendar year that a person "acquires" the vehicle.

How do I file for a clean vehicle tax credit if I am not able to obtain a clean vehicle setter report

Thank you Uncle for the reply.  
So without the Sellers CLEAN VEHICLES SELLERS REPORT basically it is not possible to obtain the credit correct?  I have a regular seller report documenting the sale but NO  CLEAN VEHICLE SELLER REPORT. If so then sadly it is 4K of credits gone :(

We purchased the car just around the holidays and was out of town when the car was available for pick up and  picked it up after we returned home.  Hence difference in sales vs service date.  In addition I was also aware that the car needed to be 2 yrs old and thus did also really want to pick it up in 2025 in order to satisfy the criteria.


 

How do I file for a clean vehicle tax credit if I am not able to obtain a clean vehicle setter report

In addition when I was searching on TerboTax for clarification one of the suggestions was to submit the return on paper (ie mail in and not efile) along with the sales documentation even if I do not have the clean vehicle sales report as all other criteria was met.  I wanted to check with the Terbotax community before I went that route

 

DianeW777
Employee Tax Expert

How do I file for a clean vehicle tax credit if I am not able to obtain a clean vehicle setter report

Yes, you must have the seller report (or time-of-sale report) to claim the clean vehicle tax credit. The seller is required to submit this report to the IRS and provide a copy to you within three days of the sale. Without this report, your vehicle will not be eligible for the credit.

It's up to you if you want to try to mail your return with the purchase document.

Review the information in the links to be sure you do qualify, and double check with your dealer to be sure they sent in the required information to the IRS.

 

@Ohweeby 

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