I purchased an EV that qualifies for 7500 dollars. My application for the California EV rebate program was approved, but it says that my credit is zero. Why is that?

[jiyeol3]

My income is below the minimum amount and I even got an eligibility form from my dealer when I purchased the vehicle.

[MonikaK1]

There are tax credits available on your Federal return you can claim using Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit. That form is currently projected to become available in TurboTax on February 21, 2024, subject to change. Use this online tool to check on the availability of Federal and State forms. If you expect to qualify for the Federal credit, check to determine when the form becomes available. 

Effective November 8, 2023, the California Clean Vehicle Rebate Project (CVRP) is closed to new applications. CVRP offers up to $7,500 to purchase or lease a new plug-in hybrid electric vehicle (PHEV), battery electric vehicle (BEV), or a fuel cell electric vehicle (FCEV). CVRP offers vehicle rebates on a first-come, first-served basis and helps get the cleanest vehicles on the road in California by providing consumer rebates to reduce the initial cost of advanced technologies. Rebates are available to California residents who meet income requirements and purchase or lease an eligible vehicle. Rebates are also available for eligible carshare, rental, and public fleets. See here for other California incentives.

Applications submitted on or after September 6, 2023, were placed on a standby list. For more information, view the standby list FAQ. If you missed out on CVRP, several EV incentives are still available.

[jiyeol3]

Hi, thank you for your reply. My California rebate got approved and the dealer confirmed that I will be able to get the federal tax credit. I am not sure why it says that I won't be getting any. I rechecked it after getting notified that the form was available, but it still computes the amount as zero. Do you know why it keeps giving me zero?

[MayaD]

Are you asking about the federal tax credit? The federal EV tax credit, worth up to $7,500.

The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.

Credits for new clean vehicles purchased in 2023 or after