https://www.npr.org/2025/03/26/nx-s1-5341550/irs-ev-ta-credit-2024-solution
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Iâve been trying to get used EV under $25k and get the $4k ev tax credit applied on pos. For some reason, the regular dealer refused to do this while some used car dealer are more than willing to do this. So frustrating.
I was going post the same as I got notification from my CPE provider (shorter version of that article):
"IRS addresses problems in claiming 2024 clean vehicle credits (04-03-25)
Beginning with the 2024 tax year, to claim either a New Clean Vehicle Credit or the Previously-Owned Clean Vehicle Credit, registered dealers must submit an IRS Form 15400, Clean Vehicle Sellerâs Report, to the IRS on its Energy Credits Online portal within 72 hours of the sale of a qualifying vehicle. Both the taxpayer and the dealer must have a copy of this report to:
Claim either of these credits on the taxpayerâs tax return; or
Transfer either of the credits to the dealer at the time of sale (referred to as an advance credit).
Unfortunately, many dealers were not submitting this report to the IRS in a timely fashion (if at all), which resulted in the taxpayer being denied the credit and/or the dealer being denied the advance credit.
According to an alert issued by the National Automobile Dealers Association, the IRS has now reopened the portal for dealers to submit the 2024 Form 15400 and is waiving the 72-hour submission deadline. To date, we are not aware of a specific timeline by which these reports must be submitted.
Taxpayers who were unable to claim the credit previously for the 2024 tax year due to the lack of a Form 15400 should contact their automobile dealer now to obtain the report while the portal remains open for dealers to submit their 2024 seller reports."
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If those dealer are not willing to apply the $4k at point of sale, I donât trust them to do it correctly to apply these credit on my tax return.
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When the âdeal cannot get doneââŚalways have a back-up plan
Going to Plan B: New Michelins on a Toyota
This is a paper work mess. If the buyer fails to seek out the Form 15400 from the dealerâŚdid the IRS send Notice CP99D? âYou transferred a clean vehicle credit during the yearâ . The IRS got it because the notice says they got something. If not get on the Dealer to get it done. Cannot speculate if an extension will be granted in the mean timeâŚat this time.
What extension are you referring to? And, yes, hard to find a dealer that participates in this program and knows what to do.
It is confusingâŚit is against LH rules to be political, but hopefully these tax credits are allowed to sunset on the expiration date of the law.
above instance may be apples & oranges but the Notice CP99D was received but the Form 15400 is not at hand. Took the credit and just made the income limit in only one of two yearsâŚproprietary tax software coders donât have time to make the data input user friendly it seemsâŚwasted time and did a rerun of the whole return to get it right. If the Form 15400 was not filedâŚthen you a dealing with a big admin waste of time. Good luck.
This is all can be avoided if you insist the dealer to apply the $4k used ev credit at point of sale. YES, finding dealer whoâs willing to do that is not easy. As I said on my previous post, for dealers whoâs not willing to apply it at pos, I donât trust them to do it properly either and Iâm not willing to find it out later when I do my tax return. Those dealers will not have the incentive to help me out and fix their mistakes. $4k is not an amount Iâm willing to write off for their incompetency.
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You can insist all you want, some dealers flat out refuse to enroll in the program. Many of those enrolled donât sell enough of those to know what theyâre doing. And, yes, $4K on $25K or less car is a hell of a lot of money to forfeit!
Hmm, oh wait, I address that, maybe you should read my whole post, instead of just quoting my first sentence and go to town with it.
I read it and meant exactly that. The emphasis was for those not intimately familiar with the situation expecting to get that tax credit as afforded by law.
You canât make a dealer enroll no matter how much you insist. Those who were interested did it long time ago as theyâve had almost year and a half to do so.
You really like picking online fights over semantics?
Huh, you are the one who pick my post, quote the 1st sentence n goes to town with it eventhough I already address your argument in the next sentence and now try to gaslight me that Iâm picking a fight over semantics. The heck.
This is LH, one of the strategy to get a good lease is email your target deal and move on from those dealer whoâs not willing to do that. I donât see any difference finding a dealer whoâs willing to apply the $4k at pos similar to those. Been there.
Did you not say âinsistâ?
Yes, thank you for admitting that youâre the one whoâs picking a fight over semantics, btw, have you tried to get that $4k used ev credit?
If you do, you will find out easily the issue is NOT dealer who flat out refuse to do the $4k. Plenty of dealer will tell you, yes the car is eligible for that $4k used ev but you have to get that yourself on your tax return filing. As I said multiple times in this thread, if theyâre not willing to apply it at pos, I donât trust them to do this properly or do this at all. Iâm not willing to find out the issue when I filed my tax return next year. They will not have the incentive to fix it as well. YMMV.
Fyi, most of the times, the dealer who refuse to do this are the name brand dealer who sell theirs as cpo. The same dealer who has no problem leasing their new cars n pass that $7.5k credit to us. So yeah, their refusal to apply the $4k at pos is just a lazy excuse to me. Many small used car dealer are willing to apply the $4k and advertise it as such. Yet, they also conveniently raise their price to account for that $4k.
Hereâs where my âinsistâ pays off. Got this mini who were on the FL jeep dealer lot for 4 months+, price it competitively, and they didnât know about the $4k until I ask about that n give them the link on the irs site & ask them if they can apply it at pos. Yes, I have to pay the expensive FL doc fees.
The âsolutionâ that some scumbag who didnât do it when a deal was on the line, will do it later with absolutely no monetary motivation⌠Thatâs a pathetic solution IMO.
Not excusing dealers screwing up the ev tax credit pos application, but doing all the proper reporting to the irs and applying a bank incentive are very, very different things.
The dealer does not do anything to pass on a tax credit on a lease. They simply apply an incentive from the bank.
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When I bought my 2025 Tesla MYP in March they applied the $7500 POS credit and last week IRS sent me a letter that I need to file a form 8936 and 8936 Schedule A when doing my taxes next year⌠donât know how different the $4K is, but they applied it correctly and IRS was dully notified
No, what I said is far from semantics. I completely agreed with everything you said except for the âinsistâ part which I believe is a dead-end 99.9% of time. The fact that you succeeded and made a deal on a cool but fairly obscure car ~1,000 miles away is nothing but an exception proving the rule. Sure, ask and try to escalate it to make sure the answer a salesperson gave you is correct. But to insist that a dealer that does not participate to enroll after almost a year a half of not doing so is not a winning strategy.
You lucked out finding an ignorant dealer whoâs not also arrogant - most do sport that deadly combo, lol! As you stated yourself:
Another wrinkle for some folks in CA is that the car may not qualify for an additional utility co rebate if bought outside the jurisdiction, no idea if that was a factor for you.
Last but not least, there was no âgoing to townâ - you took it all wrong - just stating an opinion on one cog in this machine, thatâs all.
Exactly, that 7500 comes from the captive and the dealers donât even have a say in it. Itâs built into the leasing programs.