AWD Or Nothing· Registered User
Nope, it would not, and I fail to see how this is screwing the IRS out of anything as it is following the law.. As long as the vehicle was not purchased with the intent to be re-sold (clearly not in this case after thousands of miles of use), the federal tax credit does not need to be returned. Only the first owner of the vehicle is entitled to the tax credit, and there would not be another first owner for that VIN if the vehicle is re-purchased by the manufacturer (i.e, the original transaction for purchase isn't reversed, and the title-history of ownership will remain in tact). There is no minimum holding period for the fed tax credit, but there is for some state incentives.I am not a tax expert, but I would be very careful trying to screw the IRS out of tax credits, as that sort of situation may qualify as a recapture event, and the taxpayer would be required to repay the tax credit to the IRS on a subsequent tax return.
Edit: The rule you quoted would only apply if it were known the manufacturer would be converting the vehicle to a non-electric powered vehicle. A re-purchase doesn't necessarily mean the vehicle would be destroyed (usually they fix and re-sell), and since OP doesn't know and would have no reason to know what the mfr would do with it, it wouldn't trigger such an exception.