Plug In-Hybrid Tax Credit

[evil-p]

Hi Team,

I entered a binding contract to buy a Porsche cayenne Plug-In Hybrid on 06/14/2022, I received the car on 11/19/2022.

The car was built in Europe.

Do I qualify for the federal EV credit and what should I put in the Date acquired and Placed in Service sections of turbo tax. 

[DoninGA]

Yes, you qualify for the EV credit on your 2022 tax return.

IRS website for an EV Credit - https://www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before

Purchase date vs. delivery date

If you entered a written binding contract to buy a vehicle after December 31, 2021, and before August 16, 2022, but took delivery on or after August 16, 2022, you may elect to claim the credit based on the prior rules.  To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle.  Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return. 

[evil-p]

Thanks for the reply.

Do you know what date should I type in the Date Acquired and Placed in Service date of turbo Tax? If I put 11/19/2022 it tells me you should put 08/15/2022, but I got my car delivered on 11/19/2022?

[DoninGA · Accepted solution]

The following is from the TurboTax On Demand Tax Guidance -

If you purchased, or entered into a written binding contract to purchase, a qualified plug-in electric drive motor vehicle after 2021 and before August 16, 2022, you may elect to treat such vehicle as having been placed in service on August 15, 2022, the day before the enactment date of the Inflation Reduction Act of 2022.

Using the date of 08/15/2022 will not invalidate your credit and it will allow the TurboTax program to process the credit on Form 8936.