How many times can you qualify for the federal tax credit

[pk-sd]

Is there a personal limit on how many time you can qualify for the EV federal tax credit ? I have used that credit twice with Nissan LEAF. I know that California state rebate is 2-times maximum (effective Jan 1st, 2015), but I have not been able to find anything similar on Federal tax credit.

 

[Zaphod]

Best of my knowledge there is no limit on the federal tax credit.

 

[355rockit]

Is there a personal limit on how many time you can qualify for the EV federal tax credit ? I have used that credit twice with Nissan LEAF. I know that California state rebate is 2-times maximum (effective Jan 1st, 2015), but I have not been able to find anything similar on Federal tax credit.

Since you have experience with the Federal tax credit... It appears that one doesn't need to pre-apply for the credit from what I can find on the IRS website, just attach from 8936 to the 1040. Did you receive a document from Nissan with your Leaf that your purchase is eligible? Did you need to attach any proof of eligibility with your form 8936 that is sent in with your 1040?

 

[DR61]

When I took the credit in 2013 tax year, all that was required was that you purchased a car on the current IRS list. No proof required.

 

[smartypnz]

Thought they asked for Vin number (been over 3 years)

 

[DR61]

You may need to enter your VIN on the IRS form.

 

[Jeffgtx]

I think it's 2x credits per year. So a max credit of $15000.

 

[BluestarE3]

I think it's 2x credits per year. So a max credit of $15000.

Use additional 8936 form(s) if you need to list more than two cars.

 

[swaltner]

Theoretically, one entity (person or company) could have claimed 200,000 credits that were available, but as an individual, you would have trouble claiming that you didn't purchase the vehicles for resale. In other words, no restriction on quantity per year or over the course of several years.

Look on the instructions for IRS form 8936 https://www.irs.gov/pub/irs-pdf/i8936.pdf. The restrictions are clearly spelled out there on the instructions for the form.

The following requirements must be met to qualify for the credit.

• You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit.
• You placed the vehicle in service during your tax year.
• The vehicle is manufactured primarily for use on public streets, roads, and highways.
• The original use of the vehicle began with you.
• You acquired the vehicle for use or to lease to others, and not for resale.
• You use the vehicle primarily in the United States.

There are no per year or lifetime limits specified here, so there are no hard limits on filing the credit. The instructions also clearly outline the phaseout process and other common questions related to the EV tax credit.

 

[dsvick]

Keep in mind that even though you can claim multiple credits, you also have to have enough tax liability to get the full amount. It doesn't do you any good to claim $15K worth of credits against only a $10K tax liability, you'd be leaving $5K on the table.

 

[Plugsuvohio]

My CPA assured me these tax credits can be used for carry forward. Nothing has to be left on the table. PS Don't forget there are also Federal credits up to about $1000 for installation of EV charging systems at a home or building. Best use these quickly because no telling what the current administration may do with pre-existing policy.

 

[swaltner]

My CPA assured me these tax credits can be used for carry forward. Nothing has to be left on the table. PS Don't forget there are also Federal credits up to about $1000 for installation of EV charging systems at a home or building. Best use these quickly because no telling what the current administration may do with pre-existing policy.

(edit: I believe) Your CPA is wrong. Read the instructions from the IRS on this form.

Line 23
If you cannot use part of the personal portion of the credit because of the tax liability limit, the unused credit is lost. The unused personal portion of the credit cannot be carried back or forward to other tax years.

edit: tone down first statement, because I'm not a tax professional and I've been known to be wrong before. I would definitely ask why your CPA is making a statement contrary to the info provided from the IRS though.

 

[MorrisonHiker]

PS Don't forget there are also Federal credits up to about $1000 for installation of EV charging systems at a home or building. Best use these quickly because no telling what the current administration may do with pre-existing policy.

The tax credits for installation of alternative vehicle fueling systems expired at the end of 2016.

 

[SageBrush]

My CPA assured me these tax credits can be used for carry forward. Nothing has to be left on the table. PS Don't forget there are also Federal credits up to about $1000 for installation of EV charging systems at a home or building. Best use these quickly because no telling what the current administration may do with pre-existing policy.

I vaguely remember tax credit for business having a carry forward provision. I'm pretty sure thought that the personal tax credit for EV does not.

 

[JoeCoolMan24]

When I took the credit in 2013 tax year, all that was required was that you purchased a car on the current IRS list. No proof required.

What if 2 names are on the title and one person took out a loan, and the other put down the down payment. Can either claim the credit?

 

[Stolz25]

(edit: I believe) Your CPA is wrong.

I second this. I spent about half an hour on the phone with my accountant this week taking about the credit and how to make sure my tax liability is high enough. I doubt many model S buyers had to worry about it, but I suspect a lot of tax credit is going to be left on the table from Model 3 buyers.

 

[smartypnz]

Roughly, what income would require a tax of $7500?

I know there are many factors, but say someone married filing jointly and average deductions.

 

[Stolz25]

Roughly, what income would require a tax of $7500?

I know there are many factors, but say someone married filing jointly and average deductions.

I make 93k and I have two children and my taxes owed are roughly 7k, so I am going to have to create some extra income to take full advantage of the credit, assuming I qualify for the 7500.

 

[smartypnz]

@Stolz25

But is that what you owe or what you pay?
A lot of people will confuse what they are 'due' when they finish their tax return with what they are actually paying. For example after doing my return, I may owe $3000. But my tax liability might be $12,000 and I had only had $9000 withheld during the year.

Some think that their tax is $3000.

The EV tax credit of $7500 is subtracted from that $12,000. So, in this case, I would get a check in the amount of $4500.

 

[Stolz25]

@Stolz25

But is that what you owe or what you pay?
A lot of people will confuse what they are 'due' when they finish their tax return with what they are actually paying. For example after doing my return, I may owe $3000. But my tax liability might be $12,000 and I had only had $9000 withheld during the year.

Some think that their tax is $3000.

The EV tax credit of $7500 is subtracted from that $12,000. So, in this case, I would get a check in the amount of $4500.

That is my total tax liability, it doesn't include what I pay in during the year. I'd guess if you had two incomes and no children it would take quite a bit less income to get to the 7500 mark.