How Often can i claim EV Tax Credit

[ahoniranjan]

Hi

I bought a Tesla Y 2023 in April and had an accident in September the insurance company had declared it a total.

I was told that i can claim EV tax credit for the totalled vehicle (subject to capital gains on the difference in cost price vs price ofered by my insurance)

My question is - Can i claim EV Tax Credit for the second new vehicle which i plan to buy in October. Is there a time gap between the claims. 

[Mike9241]

you may have a bigger gain than you realize. tax basis must be reduced by the EV credit. nothing stops you from buying as many EV vehicles as you want in a single year and claiming the EV credit on each.  HOWEVER, YOUR TAX LIABILITY MUST EQUAL OR EXCEED THE EV CREDITS BECAUSE THERE IS NO CARRYOVER FOR ANY THAT IS UNUSED 

[ahoniranjan]

Thanks much Mike for your inputs on this. 

Is there a official web link, i can get more details related to this question. Would help

[NCperson]

@ahoniranjan on the question of whether there is a limitation for how many EV credits you can take in a year; the IRS doesn't  explicitly state there is a limit, so the inference is there is no limit. 

However, there is a mathmatical limit since the tax credit can only be used to reduce Line 22 (before applying the credit) of Form 1040 to zero.  And any unsed credit can not be used in a future year; it expires worthless. 

So for example, prior to applying the EV credit, Line 22 is $12,000, then even if you purchase two EVs in one year, you would be limited to $12,000 of credits and forgo the remaining $3,000. 

https://www.irs.gov/newsroom/topic-c-frequently-asked-questions-about-when-the-new-requirements-appl...