[truthseeker]

You can't use an EV tax credit twice in one year as I remember. At least check.

No such thing.

 

[bjackson]

Just an update -- I got my ID.4 back ten days ago, eleven days after it was towed to the dealership. Since then, I have driven it every day, including a 400-mile round-trip with EA charging on the way. Everything is working fine, and I (cautiously) love my car again.

 

[Steve Jewell]

Should anyone ever keep a vehicle that is new technology past the warranty? 🤔

I'm certainly not chancing it. I own 7 cars. Just 2 are daily drivers, the ID4 being one of them. We do the classic car shows every summer. It's amazing to me how much more complex and NOT DIY friendly modern cars are. 3 cars in our garage are pre-computer era vehicles (built before 1980 for anyone not old enough to remember). None of these vehicles contain a single piece of electronic tech or mechanical parts that ever require them to leave my house when something breaks or is just all done due to age. I've got an old Corvette that I've owned for 44 years and it hasn't seen the inside of a shop since it was last re-painted in 1996. Paint and body are not my thing but when it comes to the mechanical stuff I'm a long time DIY guy. A couple of years back I a found a '69 Z/28 that I purchased in pieces from a woman who's husband had passed away in the middle of a frame off restoration. I put it all back together. Bottom line: I do it all when it comes to the mechanical stuff. But that's only the story for OLDER cars. The car that worries me most these days is a 2002 T-bird my wife loves more than any other we own. I can't get her to agree to sell it so I live with it. No warranty is possible due to it's age and if and when stuff breaks that is tech related I'm super challenged to learn something new. All the mechanical stuff is still easy enough but the electronics, not-so-much. A 2017 Ram Truck and a 2018 Challenger are both fully warrantied and Dodge's problem when stuff breaks. I doubt I'll keep either vehicle beyond any ability to warranty them both have 8 year bumper to bumper warranties extensions purchased at very low cost. Then there is this latest purchase....the ID4. My wife loves the car. Very cool tech and modern to the max but my ability to fix anything that goes wrong in the future seems so very limited that I paid up for VWs extension of the bumper to bumper warranty. The entire car is now covered for the full 8 years bumper to bumper and this one is the one car that is gone for sure before that warranty is finished, assuming it can't be extended again at what I'd consider to be a reasonable price.

 

[Steve Jewell]

You can't use an EV tax credit twice in one year as I remember. At least check.

That seems incredibly unlikely. A single tax return is often a joint return between a wife and husband. In that reported year a family decision to go "all in" on EVs might see them buying a new car for each of them. I see no reason why they couldn't take the credit for each of the two cars. If the goal of the credit program is to get more EVs onto the road.......why wouldn't a tax payer be able to take the credit twice? Imagine if you saw your EV totaled out in a collision or you sell it. Pretty hard to imagine why the tax law designed to encourage the purchase of an EV over ICE would require you to wait until the end of the year to make the decision to purchase another EV.

If you're right about what you suggest maybe you could point us to the IRS web page that describes this.

 

[as9632]

Congratulations. It’s LEMON LAW time! Do it quickly. Let the car sit at the dealer for 30 days. Lawyer up and get a good offer. Take the money and get a Model Y. You are much better off given the horrendous resale values of ID4.

 

[Nai3t]

That seems incredibly unlikely. A single tax return is often a joint return between a wife and husband. In that reported year a family decision to go "all in" on EVs might see them buying a new car for each of them. I see no reason why they couldn't take the credit for each of the two cars. If the goal of the credit program is to get more EVs onto the road.......why wouldn't a tax payer be able to take the credit twice? Imagine if you saw your EV totaled out in a collision or you sell it. Pretty hard to imagine why the tax law designed to encourage the purchase of an EV over ICE would require you to wait until the end of the year to make the decision to purchase another EV.

If you're right about what you suggest maybe you could point us to the IRS web page that describes this.

There's no need to speculate, it's allowed.

 

[Palouser]

That seems incredibly unlikely. A single tax return is often a joint return between a wife and husband. In that reported year a family decision to go "all in" on EVs might see them buying a new car for each of them. I see no reason why they couldn't take the credit for each of the two cars. If the goal of the credit program is to get more EVs onto the road.......why wouldn't a tax payer be able to take the credit twice? Imagine if you saw your EV totaled out in a collision or you sell it. Pretty hard to imagine why the tax law designed to encourage the purchase of an EV over ICE would require you to wait until the end of the year to make the decision to purchase another EV.

If you're right about what you suggest maybe you could point us to the IRS web page that describes this.

Thanks for pushing to look further. First I can think of reasons why replacing a car totalled for which insurance renumerates you in order to get a replacement could be considered 'double dipping' if you received another tax credit for essentially the same situation - however IRS rules on these kinds of things can be completely arbitrary as they try to interpret a legislative policy.

So, what did I find? The $4000 tax credit for buying a used EV from a dealer can only be used once every 3 years! In a cursory search and looking at the IRS Faqs I couldn't find anything regarding how often a the tax credit can be used for a new car. That indicates there may be no limitation. If there are limitations they may be still deep in the fine print or will be clarified in March, such as replacement from a collision.

I'm assuming that in the case of any limitation, such as the used car tax credit, that in the case of joint filing each tax payer is treated as an individual case.

I'd research further but since I'm traveling it's not convenient and my access is limited.

 

[Nai3t]

I couldn't find anything regarding how often a the tax credit can be used for a new car. That indicates there may be no limitation.

Three pages in and...

You can "double dip."

You can claim as main new car EV credits as your income and tax liability allow. There's no hard limit.

IRS guidance had constraints against resellers, but that's about it. Plenty of car flipping has been happening like this with the crazy used car market over the past couple of years, with others claiming multiple credits and credits in connective years.

 

[Palouser]

Three pages in and...

You can "double dip."

You can claim as main new car EV credits as your income and tax liability allow. There's no hard limit.

IRS guidance had constraints against resellers, but that's about it. Plenty of car flipping has been happening like this with the crazy used car market over the past couple of years, with others claiming multiple credits and credits in connective years.

So, if you had a $22,500 tax liability, you could theoretically get three $7500 EV credits? Hmmmm, interesting. I guess that's somewhat of a self limiting situation but not by a limit for buying EVs.

 

[Nai3t]

So, if you had a $22,500 tax liability, you could theoretically get three $7500 EV credits? Hmmmm, interesting. I guess that's somewhat of a self limiting situation but not by a limit for buying EVs.

Yessir – you'll note on the tax form there are two columns to enter info for two vehicles (did it myself last year). The 2023 income cap adds an obstacle to the mix, but it's still possible.