Trying to research EVs and leasing. Looks like the IRS has an income limit on the credit. Is this monitored or enforced in anyway? Or is it more on the “honor system” w the dealer? All new to EVs so any insight is helpful.
There is no income limit when youre talking about leases since youre not getting a tax credit (and the tax credit the lessor gets has no income requirements.)
There is no limit on income on leases for the EV credit. There is a limit on income on EV credit for purchases, and I hope the IRS is making attempts to enforce it.
If you file annual tax returns, it’s pretty easy to monitor & enforce.
I would not make a $7500 bet that the IRS can’t run a simple algorithm to check this and chargeback with interest.
EDIT: thought you meant purchasing. Leasing you’re not the end buyer and business buyers (like captive finance co) are exempt from income requirement
There’s nothing to monitor or enforce when we are talking about leases, at least in regards to you as the lessee.
When you lease, the credit goes to the bank, under totally different rules. They either use what they get to make the lease more attractive or they don’t. It has nothing to do with you.