https://www.carfax.com/vehicle/KNDC4DLC2N5042064
I’m confused how this car doesn’t qualify for the credit. It’s only had one owner, costs less than $25,000, and I meet the financial requirements.
It should definitely qualify. They just don’t want to deal with it.
I bought a used EV6 recently. When I was shopping around, some dealerships didn’t know about the credit or claimed they didn’t qualify for one reason or another. A few others priced the car at $24k or $24.5k, which didn’t qualify after dealer fees, or added extras that pushed the price over the limit. It was frustrating. Eventually, I found a dealer who knew about the credit and adjusted their fees to make it work.
@Ronald
Do you have to go through the dealer to get the refund? Can you claim the credit when you file your taxes?
TellurideTrekker said:
@Ronald
Do you have to go through the dealer to get the refund? Can you claim the credit when you file your taxes?
The dealer must submit it through an IRS portal within 72 hours of the sale and provide you with a receipt. Without that, you can’t claim the tax credit yourself.
@Gordon
Yep, at first, you could just claim it when filing taxes. Now the dealer must handle it during the sale and you need to file the proper forms come tax season.
TellurideTrekker said:
@Ronald
Do you have to go through the dealer to get the refund? Can you claim the credit when you file your taxes?
I believe the vehicle must come from a qualified dealer. Even if you don’t get the credit upfront, the dealer still needs to do some paperwork for it.
According to the IRS, check here: Federal Tax Credits for Pre-owned Plug-in Electric and Fuel Cell Vehicles
Sadly, the 2022 EV6 is up to the dealer to determine eligibility, since some versions don’t qualify.
The car I bought this week, I had to help the dealer set up their ECO account and educate them on how POS credits work. They weren’t familiar with it at all. In the end, they followed the IRS website guidelines to get everything set up.
@TomHenry
Do you have any resources for that?
Johnstone said:
@TomHenry
Do you have any resources for that?
Here’s a link: Register your dealership to enable credits for clean vehicle buyers | Internal Revenue Service
I walked them through the step-by-step process.
One owner, low price. Yes, it should qualify.
Here are a couple of links I found:
Does the dealer add around $1,600 in fees, pushing the price over the $25,000 cap?
AnthonyWilson said:
Does the dealer add around $1,600 in fees, pushing the price over the $25,000 cap?
Probably. That’s why I asked them to explain why it doesn’t qualify.
Luckily, there are a lot of dealers out there. If one pushes back, just move on to the next one!
LyamGenesis said:
Luckily, there are a lot of dealers out there. If one pushes back, just move on to the next one!
Most pointless comment in this thread. You act like it’s easy to just move on. Dealerships create these issues by being incompetent and greedy.
Hmm, it’s a 2022 model, and I believe the credit only applies to cars from two years prior.
Edit: Someone else posted this link: Federal Tax Credits for Pre-owned Plug-in Electric and Fuel Cell Vehicles
Note: Pre-owned vehicles bought before 2023 don’t qualify for this credit
@LizCampbell
It needs to be no older than 2 years. 2023 models now qualify.
@LizCampbell
The vehicle must not have been transferred to a qualified buyer after August 16, 2022.
If that’s the issue, this one qualifies.
I’m guessing the sales price you see includes extra fees that push the price over $25k.
That only applies to the tax credit for new vehicles under 26 USC Section 30D.
The tax credit for used cars under 26 USC Section 25E doesn’t have that restriction.