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You would need to make that decision based on whether you prefer to pay less at the dealer or get a bigger refund if you qualify for the credit, when you file your return. If you take it at the dealership, you can use it to reduce the upfront purchase price. If you wait to take it when you file your taxes, you will pay more at the dealer, but then if you qualify, you may get that much more of a refund when you file your return.
The negative side, is if you take the credit at the dealership and then end up not actually qualifying for the credit, you would have to repay the credit when you file your taxes.
Things to remember about this credit:
Final Assembly must be in North America
"In accordance with proposed IRS regulations, beginning January 1, 2024, buyers can reduce the clean vehicle’s upfront purchase price by the amount of their Clean Vehicle Credit by choosing to transfer their credit to the dealer. Before 2024, eligible clean vehicle buyers could only receive the amount of their credit after filing their tax return." Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit
Transfer of new clean vehicle credit.
For vehicles placed in service after 2023, you may be able to transfer the credit amount to the dealer at the time of sale and receive an immediate financial benefit in place of a tax credit claimed on your tax return. You will need to file Form 8936 with your return for the tax year in which the vehicle was placed in service. For details, go to IRS.gov/CleanVehicles.
Transfer of previously owned clean vehicle credit.
For vehicles acquired and placed in service after 2023, you may be able to transfer the credit amount to the dealer at the time of sale and receive an immediate financial benefit in place of a tax credit claimed on your tax return. You will need to file Form 8936 with your return for the tax year in which the vehicle was placed in service. For details, go to IRS.gov/CleanVehicles.
Click here to enter your VIN to see if your vehicle qualifies
You would need to make that decision based on whether you prefer to pay less at the dealer or get a bigger refund if you qualify for the credit, when you file your return. If you take it at the dealership, you can use it to reduce the upfront purchase price. If you wait to take it when you file your taxes, you will pay more at the dealer, but then if you qualify, you may get that much more of a refund when you file your return.
The negative side, is if you take the credit at the dealership and then end up not actually qualifying for the credit, you would have to repay the credit when you file your taxes.
Things to remember about this credit:
Final Assembly must be in North America
"In accordance with proposed IRS regulations, beginning January 1, 2024, buyers can reduce the clean vehicle’s upfront purchase price by the amount of their Clean Vehicle Credit by choosing to transfer their credit to the dealer. Before 2024, eligible clean vehicle buyers could only receive the amount of their credit after filing their tax return." Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit
Transfer of new clean vehicle credit.
For vehicles placed in service after 2023, you may be able to transfer the credit amount to the dealer at the time of sale and receive an immediate financial benefit in place of a tax credit claimed on your tax return. You will need to file Form 8936 with your return for the tax year in which the vehicle was placed in service. For details, go to IRS.gov/CleanVehicles.
Transfer of previously owned clean vehicle credit.
For vehicles acquired and placed in service after 2023, you may be able to transfer the credit amount to the dealer at the time of sale and receive an immediate financial benefit in place of a tax credit claimed on your tax return. You will need to file Form 8936 with your return for the tax year in which the vehicle was placed in service. For details, go to IRS.gov/CleanVehicles.
Click here to enter your VIN to see if your vehicle qualifies
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