Commercial clean vehicle credit - 7.5K for Businesses - possible if registered and title with BOTH business name and personal name?

[enl25]

My wife runs a business full time through a single member LLC.  It involves a lot of driving so she wants to get an EV. She is planning on buying a tesla but they are saying that she can only register and title with BOTH the business name and personal name.  Would she still be eligible for the Commercial clean vehicle credit (https://www.irs.gov/credits-deductions/commercial-clean-vehicle-credit) under this scenario? 

Also given the LLC doesn't have the longest credit history getting a loan may mean she needs to co-sign for financing with both LLC name and her personal name.  Would that cause any issues? 

Finally our state, Colorado, has $5K EV credit (https://tax.colorado.gov/sites/tax/files/documents/ITT_Innovative_Motor_Vehicle_Credit_Jun_2023.pdf), under the scenario of buying with BOTH the business name and personal name and getting the 7.5K clean commercial vehicle credit would she still be eligible to get the CO 5K ev credit? 

Appreciate the input on this!

Thank you

[Anonymous_]

Note that a single-member LLC (presumably without an election to be treated as a corporation via Form 2553 or 8832) is a disregarded entity for federal income tax purposes.

[Voltcredit]

Therefore cannot take that credit?

[AbrahamT]

Just to clarify, are you referring to the state of Co 5,000 EV credit. See HERE under Subsection "Eligible purchasers and lessees".

It specifically mentions that only in an S corporation or partnership capacity, may the individual shareholder claim the credit, not a C corp. Thus registering the vehicle under her name and the S corp name would bear no effect. 

As far as the 7,500 IRS New Clean Vehicle credit is concerned, the same hold true. See HERE  under Subsection Q2. 

It is not clear from either publication as to how  single member LLC would fall into the definition of partnership.

Then again, nowhere does it specifically mention that if he register the vehicle under both under his name and the llc

will his credit be adversely affected. Being the fact that an individual alone who is not associated with any busines is entitled to both the IRS and the Colorado credit and the restriction rests  solely by the manufacturer to be registered in both names, I would venture to say that he would be entitled to both credits.  

[Voltcredit]

We are referring to the Commercial Clean Vehicle Credit from the IRS. See first link of the first post.

[AbrahamT]

Note that the New Clean Vehicle Credit is the same as the Commercial Clean Vehicle Credit. See what Abraham Teitelbaum said earlier re; this

Just to clarify, are you referring to the state of Co 5,000 EV credit. See HERE under Subsection "Eligible purchasers and lessees".

It specifically mentions that only in an S corporation or partnership capacity, may the individual shareholder claim the credit, not a C corp. Thus registering the vehicle under her name and the S corp name would bear no effect. 

"As far as the 7,500 IRS New Clean Vehicle credit is concerned, the same hold true. See HERE  under Subsection Q2". 

It is not clear from either publication as to how  single member LLC would fall into the definition of partnership.

Then again, nowhere does it specifically mention that if he register the vehicle under both under his name and the llc

will his credit be adversely affected. Being the fact that an individual alone who is not associated with any busines is entitled to both the IRS and the Colorado credit and the restriction rests  solely by the manufacturer to be registered in both names, I would venture to say that he would be entitled to both credits.  

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[Voltcredit]

The New Clean Vehicle Credit includes income restrictions, and eligibility can depend on specific vehicle models and battery production criteria.

The Commercial Clean Vehicle Credit, aimed at businesses, does not have income limits and focuses on the vehicle's commercial use and the manufacturer's eligibility, without the same model and battery production restrictions.

To clarify, the question at hand is whether a single-member LLC, treated as a disregarded entity, can take advantage of the Commercial Clean Vehicle Credit. The owner of the LLC can not take advantage of the New Clean Vehicle Credit due to income restrictions.

[RobertB4444]

Absolutely.  Provided the business purchased the car and the form issued to the taxpayer with the vehicle purchase was issued to the business.  

@Voltcredit