Used and New EV Tax Credit Same Year

[Dillon116]

If I were to purchase a used EV and utilize the $4000 credit upfront on the purchase (assuming all qualifications are met) and then trade that in for a new EV later in the same year, can I then also claim the $7500 credit upfront (assuming all qualifications are met again)?

[JotikaT2]

Since the Used Clean Vehicle Credit is new for tax years starting in 2023, you would not be subject to the requirement of not having claimed this credit before within a three year time frame from the time your purchased your vehicle.  There is also no requirement specifically saying you must keep the used EV for a certain period in order to claim the credit.  Therefore, you should not have any issues with the advanced Used EV credit.

In regards to the New Clean Vehicle Tax Credit, as long as you meet all of the requirements, you would also be able to claim a credit on the new EV.  But if you return the new EV within 30 days, then you might not be able to claim the credit.  See the excerpt below.

When you claim the credit up front, you have essentially transferred the credit over to the dealer.  You would not claim any of the credit on your income tax return since you agreed to let the dealer claim the credit.