I bought a clean '11 Nissan Leaf SL from a dealer in '22. I am unable to claim the new tax break Section 25E when entering it as a EV tax break. Can I do this?

[damien6]

The current form only allows for cars going back to 2016.

[DavidD66]

According to the IRS, for a "clean" vehicle purchased in 2022, one of the requirements that must be met to qualify for the credit is "The original use of the vehicle began with you."  In other words, used EVs purchased in 2022 do not qualify for a tax credit.  For more information, see the Instructions for Form 8936.

[damien6]

Hi @DavidD66 ,

As far as I can see here

And under definitions listed at I.R.C. § 25E(c)(1)(B):
— the original use of which commences with a person other than the taxpayer,

It seems like the new law passed on Jan 1st 23 allows for such a credit. It states:

Beginning January 1, 2023, if you buy a qualified previously owned electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a previously owned clean vehicle tax credit under Internal Revenue Code Section 25E. 

I'm not 100% certain based on the above.

I appreciate your help and the previous response.
Damien.

[dmertz]

Only new cars potentially qualify for the credit in 2022.  Used cars do not.

[damien6]

Hi @dmertz .

I'm getting conflicting information from this link

[dmertz]

Regarding Section 25E, the Inflation Reduction Act of 2022 says, "amendments made by this section shall apply to vehicles acquired after December 31, 2022."

Your link got scrambled by Intuit's filter:

https://www.irs.gov/credits-deductions/used-clean-vehicle-credit